So after doing some more profiling I managed to get my main CPU thread response time down from 10ms average to 4ms average. It was most likely a glitch associated with URP and rendertextures not wanting to properly render under certain circumstances. I also did a bit of restructuring so that the inventory is not constantly being rendered and only renders when needed. I am not quite sure if this contributed to it (it probably did a lot lol).
I also added an FPS counter too. It will probably go unresponsive during interactions and stuff but it should work in most of the game.
And this is like, probably the actual final thing i'm going to do for this demo. I never really meant to have all these silly problems come up. I am due for a massive refactor, but I suppose if I want to move forward with game development I need to be able to recognize and realize optimization issues and rendering glitches that hit performance hard.
I reuploaded with the new changes if you want to give it one more shot. Thanks Tomo.