They only way I was able to get the event flooding for Sensendrpktmon to stop was to offboard my VM's from Cloud Defender for Endpoint. Not sure what the deal is here, since we had followed all MS documentation and instruction for how to configure Defender for Endpoint while using a 3rd party AV solution... I'm surprised more people don't have this issue.

Edit: I was wrong about offboarding from Defender for cloud stopping this problem, but I have a bit more info. Something on system startup is causing this pktmon trace. I seem to be able to stop the trace itself by opening powershell as administrator and running 'pktmon stop' which shows a couple active traces, and once those are stopped the event flooding seems to stop as well as the performance issues. Just need to find out what the heck is triggering these pktmon traces on system startup.