No , it's actually an issue with the MS Bluetooth adapter. It seemingly was designed with the older covers in mind.Yes, always attached the keyboard when doing updates. So, if this is an issue with the OS, no need to spend money on a new Bluetooth keyboard, huh?
That just confirms your touchpad is not in precision touchpad mode. In this mode most of the Windows 8 settings (tap and drag, palm rejection, etc.) do nothing. Basically it all depends on the keyboard/touchpad firmware, which in this case sucks.I tried to swipe from the sides and it doesn't seem to work via the adapter. Maybe I'm doing it wrong?
Trying a different bluetooth touchpad will provide a completely different experience, which may be better ... or worse. Manufacturers seem not to care about this, and the "generic" Synaptics drivers don't work via Bluetooth.