Windows 11 is slow even in Safe Mode, even after formatting, fresh install and updating

[Windows 11]

My cousin bought Mi Notebook 14. It has i5-10210U, 8GB 2666MHz DDR4 RAM, SATA3 SSD by Kingston. Recently it got very slow. The task manager kept showing less than 20% CPU utilization. Also, less memory usage. Still the performance is noticeably slow. Each click / UI interaction was laggy. Opening a folder in file explorer, opening a new tab in file explorer / Microsoft Edge, opening paint, everything shows a processing ring at least for a second and two before completing. I have installed Windows 11 Single Language Update 23H2, but was of no help. I updated it to latest update (24H2

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