Copy from Illustrator 2020 to Photoshop, lags, only smart object possible

I am trying to copy objects from Illustrator 24.1.1 to Photoshop 21.1.1 (All latest versions as of writing) and there is about a 10 second lag when I activate the Photoshop window to when the object pastes. Just the lag is infuriating as I am constantly working back and forth. Furthermore, I've noticed that the "Paste options" dialog box is no longer available and the object always pastes as a Vector smart object. 

I've tried re-installing, uninstalling, resetting settings, disabling the paste as Smart object option in Photoshop settings, etc. The one thing I have noticed is the behavior if fixed when I disconnect from the internet, and am convinced that this has something to do with CC Libraries and some kind of clipboard sync but can't figure out how to disable it. Please help me