Re: "Screen sharing causing huge performance issues : Whenever screensharing the device becomes unusable, with the cursor disappearing, windows stuttering and latency between clicking and action being taken. This has been tested in Teams, Chrome and FireFox, all with the same result, and regardless of sharing Window, Tab or Screen."
(1) Wondering which MacOS version is currently installed on your MacBook Pro (M1 Pro, 2021
Keeping MacOS updated to the newest compatible MacOS version often avoids difficulties,
ie: mostly because any recommended bug-fixes and security updates are included in the update.
Apple support's online article: What's new in the updates for macOS Sequoia - Apple Support
says the newest MacOS Sequoia version is macOS Sequoia 15.7.2
"This update provides important security fixes and is recommended for all users."
(Reminder: It is always wise to back up your Mac beforehand, if you choose to update.)
Newest update for MacOS 26 Tahoe is now 26.1
Some of us upgrade early to have access to the new features, while others prefer to wait until any (almost inevitable) software bugs come to light, and have been addressed in the frequent updates.
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(2) You may want to ensure your Mac has at least 50 Gb storage free for the MacOS to run smoothly.
(Note: The amount of iCloud storage you have available is different,)
As you use third-party (non-Apple) apps on your Mac:
(Eg: Chrome is notorious for making high demands upon memory / storage use etc.)
There may also be other interference issues ... (eg: apps running continuously in the background etc.)
✽ Unnecessary apps like ad-blockers, virus checkers, cleaners and the like (even VPN) often cause issues. If installed, you can try turning them off (or use uninstallers from their developers) to see if that helps.
✽ Out-of-date browser extensions can also cause issues ... turn off / uninstall / or update if possible.
✽ Ensure no excessive amounts of blocked contacts have accrued from a third-party app.
✽ Any necessary third-party apps may need updating to remain compatible with your Mac's system