Severe Performance Degradation When Bosses/Large Mobs Spawn

I have seen severe CPU response times in the frametime graph (CPU up to 4000ms) when a few specific things happen.

I am a brand new player and when I was fighting the Devourer I would see very long CPU render times resulting in 0-5 fps and sometimes seconds per frame. I managed to lag my way through the Devourer and I just made it to The Rust King and its worse.

Anytime a large mob/unique boss spawns, the frametime graph has giant spikes and the CPU bar climbs.

I have also noticed the same CPU stutters when an enemy uses an AOE spell. Specifically, the lightning in The Red Veil causes a CPU stutter that is recovered fairly quickly but is definitely noticeable. Timespan is approximately 5-10 frames before normal fps returns (Normal FPS in game for me 144 fps with all graphics settings maxed out)

CPU utilization in task manager is under 5% while this is happening so it doesn't appear to be related to resource availability.



System Info:
-ASUS X670
-AMD 7700x
-32 GB ram
-ASUS RTX 5090
-Windows 10 22H2


Edit:
Updated to latest AMD chipset driver (v7.01.08.129) after scouring forums - Did not resolve issue

After trying various different things, I was able to determine that the issue was occurring because I am using a Bluetooth controller. Specifically GuliKit KK3 MAX Controller.

What is very strange is I can only reproduce the issue with the controller connected via Bluetooth. When I plug the controller in, the CPU issues go away entirely.


Remedies tried:
-Update to latest AMD Chipset Driver
-Set PoE2 in NVidia Profile Inspector, remove .exe from PoE 1
-PoE2 is recognized on Nvidia Profile Inspector as PoE1 in NVidia's latest driver (RTX 50 series)
-Start x64 exe from Windows Explorer
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Solution:
-While using Xbox-like controller (Gulikit KK3 MAX), controller must be plugged in and not connected via Bluetooth.

Connecting via Bluetooth causes issues with AoE spells, large mobs and bosses.