I bought the TB 4 dock for my Surface Laptop Studio Model 1964 i7. Apparently the dock is supposed to be compatible with this device. Approximately every 3rd time I connect the notebook to the dock, the bottom right of the screen briefly indicates that the notebook is charging. Then it switches back to battery mode, then back to charging mode. It then flickers back and forth every second, each time with an annoying sound. This either has to do with the power consumption you described, or with a defective dock, or something else. I then unplug the dock, disconnect it completely from the power supply and try again the next day. Then it usually works - but only for 1-2 days at a time. The Microsoft support page does not have a corresponding "Known Issues" page. I would definitely not buy the TB 4 again...

The laptop takes as much as it gets. In this case 96W. If the laptop consumes more than 96W under heavy load, it will have to help out with the battery. However, since this is rarely the case for several hours, apart from gaming, this is not a problem (the USB-C form factor can only supply 100W either way, your laptop probably also has a dedicated power connection)