Trackpad lag or freezing while typing on MacBook Air M4

I recently got a new MacBook Air with the M4 chip, and I've been having a strange issue. Every time I press a single key, the trackpad stops responding for a second and the cursor disappears briefly. It comes back quickly, but it happens consistently with each keypress.

I've already tried restarting, checking accessibility settings, and changing trackpad settings like Force Click and Tap to Click—but nothing has fixed it.

Since the Mac is brand new and up to date, I’m wondering if this could be a software issue or a hidden setting. I'd really appreciate any help resolving it.

[Re-Titled by Moderator]