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I am going to answer my own question :) so after diagnosing the issue I came to the conclusion that the poor performance has to do with Chrome browser (when performance is NOT set to max) since Edge has no issue playing 4k youtube videos. Another issue I encountered has to do with audio. at high volume you can hear crackling /static. Again, Edge doesn't exhibit this issue, only Chrome. Hope this helps others having these issues.
Sorry, there was a problem. Please try again later.Thank you for asking! If the software and firmware is up to date, we first recommend running the Surface Diagnostic Toolkit to help diagnose and fix any possible issues. If that doesn't help, Microsoft Support may be able to help you optimize your Surface's performance here: https://support.microsoft.com/en-us/help/4023507/surface-what-to-do-if-surface-is-running-slower
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