Closing lid (=="Do Nothing") causes external monitor to change font size and contents to shrink

[Neal360]

This is a new Envy 2in1  15-fe0097nr Windows 11 laptop.  I would like to use it with the laptop lid closed so it

fits under an external monitor on my desk.  Laptop is connected to an ASUS PA278CV ,  resolution 2560 x 1440 external monitor, with either a 10 Gb/s USB-C cable or an HDMI cable.  The W11 Display setting are set for "Duplicate" display, and I have tried both the 2560x1440 and the 1920x1080 resolution settings.  The symptoms described here occur with either resolution setting.   The symptoms described also occur with either the USB-C cable or the HDMI.  The W11 Power options are set so that lid closure is "Do Nothing".

Problem:

When the laptop lid is open, everything works just fine.  When the laptop lid is closed, the laptop screen goes black,

and the external monitor screen also goes black for about 3 sec, then resumes display of whatever was on it, but with

a smaller font size and reduced width of the content that was on the screen, the details depending on the particular web site.  The smaller font size and content width are, of course, related.   The laptop screen remains black, but the laptop is still running.   Reopenning the laptop lid immediately restores the previoius proper display.  I want this to work so that the external monitor continues to show the very same display when the lid is closed.

ASUS tech support concluded the problem was with the settings on the laptop after several expements (monitor reset, and connection of laptop to TV).  He felt that the laptop was somehow resetting the display options even though set 

to "Do Nothing".

In addition, I have connected an older W10 Spectre x360 to the monitor with the HDMI cable, and the W10 display and lid closure settings as in the case of the new Envy laptop.  SAME SYMPTOMS !

I suspect I have not set the W11 settings properly, or, more likely a display driver needs adjusting or replacing.

I have been playing with this now for 3 days.  Any help appreciated.

Neal Scribner