Update - Tried the suggestion on gearing and that helped a lot. Out of the big ring now and using 34x16 and the power match is more stable. It definitely feels like it responds quicker. The lower fly wheel inertia also helps on the rest intervals as I don’t have to wait as long for the power to drop (it also helps when slowing cadence to stand). The feel is not quite as “road like” as the higher gear but still fine and I stopped noticing it after a few minutes.
Separately, my cadence reading issue got a ton better after a firmware update to the CABLE and the latest TR app update. Both updates ended up being installed at the same time so not sure which one did the trick but there has been a significant improvement. The cadence reading is more responsive and the app will now pause when I stop pedaling whereas before the cadence would “stick” at whatever the last reading was when coasting.