The Event ID 1001 log containing the LiveKernelEvent 1b8 and the WATCHDOG dump file precisely identifies a Video Timeout Detection and Recovery failure. The Windows subsystem detected that your Intel graphics driver took too long to render the Snipping Tool's hardware-accelerated drawing overlay and forcefully intervened. This explains why the keyboard reset shortcut stopped working after the first attempt. Repeated rendering timeouts cause the operating system to lock the software display stack to prevent a complete blue screen crash, leaving your physical monitor detachment as the only hardware interrupt powerful enough to clear the deadlock. The HotKeyServiceUWP event is simply a standard HP background service reacting to the sudden display power state changes and is a symptom rather than the root cause.
Since your operating system and Intel drivers are up to date, the most effective resolution is to disable Multi-Plane Overlay. This is a Windows feature designed to reduce GPU workload, but it has heavily documented synchronization conflicts with Intel integrated graphics during layered window rendering on extended monitors. To apply this fix, open the Registry Editor as an administrator and navigate to HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\Dwm. Inside this location, right-click to create a new DWORD 32-bit value, name it OverlayTestMode, and set its value data to 5.
If the desktop manager still hangs after disabling the overlay, the next step is to increase the timeout threshold so the operating system stops preemptively crashing the graphics process. In the Registry Editor, navigate to HKEY_LOCAL_MACHINE\System\CurrentControlSet\Control\GraphicsDrivers. Create a new DWORD 32-bit value named TdrDelay and set its value data to 8. This adjustment gives your Intel GPU eight seconds to complete the drawing handoff instead of the default two seconds, preventing the Watchdog monitor from prematurely triggering the freeze. Please ensure you restart your laptop after applying these registry modifications for the new configurations to initialize.
Hope this helps :)
VP