Thanks @vitor, and I apologize for creating a new post.
Perhaps I miss-spoke, the initial poster indicated that it was network related, as they never responded to say otherwise, I went with it and added my experience.
Yes, Microsoft Remote Desktop does allow you to copy and paste between the remote session and the host machine. I see no way of changing this in MRD Preferences (just for debugging purposes.)
I'm using the latest version of everything: mac OS 12.4, Afred 4.6.6 and MRD 10.7.6 I have even tried with the latest beta version of Remote Desktop with the same results.
As for activity monitor and what it knows about the situation, I can share the sample process if needed. I also don't see anything meaningful (to me) in the console.