Hello Srividya,
Thank you for posting question on Microsoft Windows Forum!
Based on the issue description. Well! Your diagnostic reveals that you are running in Session 0 (Service mode) with Microsoft Hyper-V Video as the active driver. Because Session 0 has no physical or virtual monitor attached, Windows defaults to a "headless" state. A fixed 1024x768 resolution and Software Rendering, which explains both your resolution cap and the Three.js latency.
The suggestion here to fix this for an Electron/Three.js app is to force an Interactive Session and bypass Session 0 isolation.
Hope the above information is helpful! If it helps you get more insight into the issue, it is appreciated to accept the answer. Should you have more questions, feel free to leave a message.