Magic Trackpad 2 scroll not working correctly

I've recently purchased a Magic Trackpad 2 to upgrade my very old 2009 model. I'm running macOS 15.1.1 on a Macbook Air M1 and it works fine, but as soon as an external monitor is connected, scrolling becomes nigh impossible. The trackpad registers the scroll, but it simply stops after a few pixels and I have to restart the gesture. It cannot maintain my gesture movement to move any window contents like on the old 2009 model or akin to what you would expect on an iPad or iPhone.

Is there any way to resolve this? I've retried pairing it with and without the monitor connected, but the effect stays the same: works without external monitor, doesn't scroll correctly with an external monitor.