Latest XenServer with support for Windows 11 vTPM, streamed using PVS using non-persistent image with persistency using layered container. Windows 11 is complex to deliver and optimize but I guess transition is inevitable.
Even with storage on LVM and plenty of IOPS you still can see poor responsiveness.
XenServer IOPS
Disk-1 = 3926MB in 3sec
Disk-2 = 4024MB in 3sec
VDI Windows 11
CPU 1 socket - 8vcpu
8GB RAM (Dynamic)
Hard Optimization