For 2/3.) Go to Device Manager->Surface Type Cover ... -> Power Management and disallow the device to wake up the computer. Same for the mouse.
Hi, thank you for the advice. I have seen a number of people proposing this method which is the norm for this problem. However if you try it, you will notice it doesn't actually work. Seems like as part of the feature of connected standby, they disabled this functionality as well. Could anyone assist to verify and propose a workaround if possible?