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Closing type cover does not turn off screen?

Thank you for the technical information. :)
At least this gives me an answer I can give the customer
“Microsoft SP3 do not support that function and what you are asking for is not possible”

I still do not fully understand why having a switch / function turning off the display when the cover is closed will change SP3 to “a non-connected Standby Machine”.
To me this has nothing to do with suspend / sleep or other Power state functions. I am not defining or setting the standards so if it is as this there is not much I can do about it.
Its because every part of the hardware is controlled via Power Management, S0iX is not a sleep or suspend state (except for Win32 Apps) it is an ultra-low powered superset of the S0 Power State (On), so anytime the machine is putting any part of itself in a low power state it envolks S0iX. It has much more in common with an ARM Device's Power Management than a traditional Intel System.

Also, if I may ask why aren't your customers taking advantage of utilizing Dual Monitors (SP3 Screen and the External)?
Thank you.

You have a good and valid question there. For some reason most of the users prefer to use a single monitor.
I think it is a combination of placement / room on the desk and the difference in size of the monitors
(which also results in different size of the letters and icons between the monitors - or scaling challenges)

Thank you once more, jnjroach. I asked a question and I got an answer and a good explanation. :)