Hm, are you using native Windows RDP? That one has pretty low latency even in the default configuration (assuming a capable client).
My home internet connection pretty low latency (wired) and pretty high throughput (gigabit).
It's not absolute torture using the AVD, but it's definitely clunky.
I watched a colleague use VSCode earlier today and was kinda shocked at the amount of pop-ups, and also how they'd cover the active pane, including what the developer was typing.
My attention system isn't built for modern Microsoft apps, I think.