I was able to create a test account on my Windows PC and the lag does not happen for the new user. So, it seems to be something with my profile?
I deleted VMware related registry settings and VMware folders from %appdata%. Yet the problem continues. Any idea what it could be?
@Rob Beekmans No, there is so significant memory or CPU spike when using the client. I did notice that disk usage is pretty high. With 2309, there's barely any usage, with higher versions, it's hovering around 77%.
Edit - I was able to resolve this. Turned out it was an issue with "DisplayFusion" software that I have installed on my PC.