Having dropped game performance when running my Elgato HD60s from my laptops HDMI out port to its USB 3.0 port

Before I go into details here is my specs

• CPU: Intel(R) Core(TM) i5-9300H CPU @ 2.40GHz
• GPU: NVIDIA GeForce GTX 1650 GDDR5 @ 4GB (128bit)
• RAM: 8.00 GB (7.85 GB usable)
• Storage: 133 GB free out of 500 GB
• OS: Microsoft Windows 10 64 bit

I’m trying to figure out why my Elgato HD60s is giving me dropped game performance. I belive the weakest part in my specs is the CPU, but according to a twitch streamer I know, he said that the elgato system uses the GPU when ran from an HDMI signal to the USB 3.0 port on my computer, however I’m only having issues when it is ran from the HDMI output on my gaming Laptop back into the same laptop through the USB port. I’m trying to set up an adequate game recording system where preferably, I can use OBS to record my games without worrying about bottlenecking my weak CPU or having to lower my settings to an unreasonable percent (I prefer at least being able to encode and record at 720p60 including having a logi tech c922 pro stream camera plugged in). Is there a setting I can change to make the entire elgato system work through my GPU since its the laptop’s strongest resource? Or is this even possible according to my specs?