It's easier to use the Windows 11 22H2 ADK/WinPE since Windows 10/11 versions older than 22H2 don't support UFS disks. This works to image a Surface Go 4 and other UFS devices, without having to add any drivers to Windows PE. Download and install the Windows ADK | Microsoft Learn. The newer "ADK 10.1.25398.1" has a known issue with UFS documented on that page, in addition to the known VBS issue you mentioned. Also, Surface Go 4 is only supported on 22H2 and newer versions of Windows according to this article Surface supported operating systems - Microsoft Support, so I don't think WinPE 2004 is expected to work.
Similar experience on Asus. They also direct you to 22H2 as the solution, though they do it by telling you to reimage with a fresh image created with the Media Creation Tool or update Windows (so you end up on 22H2/23H2) [Notebook] Troubleshooting - Universal Flash Storage (UFS) Controller Exclamation Mark and Inability to Enter System | Official Support | ASUS USA
