Thank you for your response. I did in fact load and reboot with BIOS
defaults multiple times while trying out different settings without
success.

After many trials and errors I am currently running BIOS 1.06 with
mainline kernel 5.10 and everything is working fine (without GRUB
parameters).

Even though my understanding of this issue is superficial at best, my
suspicion is that Windows dual boot might be interfering even with
disabled fast boot. So one of the things I tried was a forced Windows
shutdown with "shutdown /s /f /t 0". This seemed to resolve my issue but
it's entirely speculative.

Since I do need this laptop for work from time to time, I am hestitant
to try updating the BIOS again and see if I can get the latest version
running.

I hope this is helpful in any way.

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https://bugs.launchpad.net/bugs/1878279

Title:
  MSFT0004:00 06CB:CD98 Touchpad/trackpad mouse randomly not recognized
  from any given boot

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