It’s signal interference. https://superuser.com/questions/1282590/why-does-usb-3-0-interfere-with-2-4ghz-devices#1282595

You can attempt to opt-out, but this kind of thing should be illegal in the first place.

https://www.spectrum.com/policies/your-privacy-rights-opt-out

That’s their web dev documentation. The official position is no: https://mozilla.github.io/standards-positions/#webusb

ID_INPUT_SWITCH (Line 88 here) appears to be an option that is excluded from the list on the libinput page.
I went through some similar issues with PostmarketOS on a Chromebook. The libinput quirks and udev rules are highly undocumented and unstable right now. You have to piece together information from existing configurations and poking around in the libinput repo.

Then you’ll likely have to mess with the udev rules and force the device to recognized as a lid switch.
Per the example under “Querying the hwdb,” you need the ID_INPUT_SWITCH property to be set correctly.
There’s an example of how to group devices in the Arch wiki for graphics tablets that may be of use if libinput will accept two different switches as one.

If you are using Wayland, it might be time to play with libinput quirks.
I’ve found the best way to set them is by first reading ones that may already cover your situation, the finding the right string to match on.