Jason,
OK, at least we are not dealing with S0 Low power idle.
1 I think that clarifying what does & does not happen by using that
Event viewer,
Custom view will help.
2 I think it would also be worth reinstalling the display driver just to make sure that we are not facing some aberrant behaviour caused by display driver corruption.
I'd normally advise people to go to their computer maker's support site to get the driver but you can't do that so go straight to Intel instead.
List of Drivers for Intel Graphics
This is just to avoid wasting time & effort looking elsewhere. There is no diagnostic test for display driver corruption so reinstalling it just eliminates it as a possible cause.
3 How long has this problem been happening? And what is the history of this laptop?
4 I notice that your Windows 11 is 22621.188. The latest Cumulative update takes us to 22621.1992. Why haven't you been updating?
5 Do you have any means of finding out if your Bios is up-to-date? Some Bioses can place constraints on, for example, choosing lid close actions.
That systeminfo.exe command should also reveal your Bios version and the entry might include the name of the Bios maker so you could use that in searching for Bios version-update info.
6 Is your laptop a conventional laptop? Is there anything unusual about it? I ask because I have a 'laptop' that is actually a tablet with an integrated keyboard that it slots into so it looks like a laptop but remains, in essence, a tablet.
Best of luck,
Denis