AMD 7040 / Micro-stuttering in Fedora - Kernel 6.12.4-200.fc41.x86_64

I have a Framework 13, 7840U that I have just updated from using kernel 6.11.11-300.fc41.x86_64 to 6.12.4-200.fc41.x86_64 in Fedora 41 (latest bios as well) and immediately noticed the micro-stuttering that appears even when I try to move the cursor on touch pad in a cirular pattern.
To confirm if this is a kernel issue, I reverted back to 6.11.11-300.fc41.x86_64 and moving the cursor around is smooth for me.
Looking at the dmesg, I see that the new kernel has many lines of the following message:
[ 347.647124] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
The older kernel does not show these lines in dmesg.

I currently have one USB C module plugged-in for charging and two USB-A modules that are unconnected. The fourth slot does not have any module in it. (Was removed before restarting the laptop)
Here’s the ending part of the dmesg:

[   43.584923] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
[   44.610634] wlp1s0: authenticate with 48:e2:ad:09:df:e8 (local address=e6:1f:4a:4b:36:83)
[   45.090282] wlp1s0: send auth to 48:e2:ad:09:df:e8 (try 1/3)
[   45.095300] wlp1s0: authenticated
[   45.098170] wlp1s0: associate with 48:e2:ad:09:df:e8 (try 1/3)
[   45.112085] wlp1s0: RX AssocResp from 48:e2:ad:09:df:e8 (capab=0x1011 status=0 aid=14)
[   45.147994] wlp1s0: associated
[   45.148152] wlp1s0: Limiting TX power to 30 (30 - 0) dBm as advertised by 48:e2:ad:09:df:e8
[   47.559115] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
[   47.693200] rfkill: input handler disabled
[   48.179463] Bluetooth: RFCOMM TTY layer initialized
[   48.179475] Bluetooth: RFCOMM socket layer initialized
[   48.179478] Bluetooth: RFCOMM ver 1.11
[   49.360141] usb 1-4: reset full-speed USB device number 2 using xhci_hcd
[   52.180641] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
[   53.879966] usb 1-4: reset full-speed USB device number 2 using xhci_hcd
[   55.583577] rfkill: input handler enabled
[   56.803497] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
[   56.885763] rfkill: input handler disabled
[   58.788428] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
[   63.435533] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
[   65.411449] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
[   67.125208] usb 1-4: reset full-speed USB device number 2 using xhci_hcd
[   71.266653] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
[   73.245529] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
[   75.220995] pcieport 0000:00:08.1: PME: Spurious native interrupt!
[   81.204082] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
[   83.178532] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
[   85.238156] pcieport 0000:00:08.1: PME: Spurious native interrupt!
[   87.170536] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
[   89.187130] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
[   91.163584] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
[   93.139767] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
[   97.099555] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
[  101.058104] xhci_hcd 0000:c1:00.3: Refused to change power state from D0 to D3hot
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