Updating to Microsoft Mouse and Keyboard Center 13 fixes this issue.
Win 10 20H2 (19042.906) Experience Pack 120.2212.221.0
Installed KB5000842 this morning, rebooted, and immediately had a mouse wheel scroll problem (Microsoft Precision Mouse, USB connected). I have the scroll set at 80 lines (was 3) in the Windows|Settings|Mouse screen and the Microsoft “Mouse and Keyboard Center” “Accelerated Vertical Scrolling” set to 7 (was 2)and am barely to the scroll rate that I had prior to the update.
For some reason Windows Update did not trigger this update (to Center 13), and for half an hour I was crawling – almost looked like I was scrolling in pixels instead of lines.