W2022 poor performance

[Rickb]

We have done two new servers for customers that need two W2022 vm's on brand new Dell Power Edge servers and we have been having some major performance issue in the VM for both customers. When you load the OS the VM's seem to be fine but once you start placing a load on the servers (files share and small SQL express DB) the servers are almost freezing and then good for brief time. If you are on the VM just access window explorer you will get the circule on the mouse just waiting and then just starts responding. The vm does now show the server under load at anytime either on the vm or if data is accessing remotely.

I did find the some posts about the current VirtiIO SCIS drive having issue with W2022 and I downgraded them to the 1.208 version and that helped a little but still really bad. We are not seeing this on our servers in the data center but we are using CEPH with no-raid on those clusters.

Anyone see stuff like this or any suggestions?

Dell PowerEdge T560
dual Silver 4309Y 2.80GHZ
PERC h760 Raid 5 Nearline SAS 12TB storage
128GB Ram

VM
VirtIO on SCSI and NIC
pc-q35-9.0 (tried 8.2 as well)
Windows 2022 std
24 core
64GB
500GB disk (os)
4TB (file share data)
lvm-thin datastore 11TB
UEFI


PVE 8.3 no-subscription (current as of today)
UEFI
Memory does not consume more then 60%
IO delay never exceeds 0.40%
SWAP avg 5%
KSM Sharing is 0 B