I have it working. This is what I did:
Find the FlightSimulator.exe in the folder location.
Right click on it click Properties.
On the Compatibility tab, I checked the Disable fullscreen optimizations.
Then I clicked Change high DPI Settings. There I checked Override high DPI scaling behavior. The option should be “Application”. Click ok and Apply.
I then also turned off the Xbox Game Bar, Captures, and Game Mode. You can search for those each in the Windows Settings.
I’m not sure which of those fixed the issue but it is working now for me and not freezing.
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