I had this issue and it was due to the port on my laptop (which is Windows 11). Some of the ports are USB 3 but one of them is only USB 2 (although they all look the same).
I had to use a USB 3 port to get the higher resolution.
It's ok because I have a hub that goes 1 port -> 4 ports and they are all USB 3. One wonders then what is the benefit of the USB 2 port at all as all my devices are in that hub.
In any case, once I used the right port I got a good resolution.