The default CP210x drivers that come with windows use an USB enumeration mode - that is if the drive detects an M character, a legacy mode that thinks it's a USB mouse kicks in and screws everything up.
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I discovered this on the esp32 forums and this article, thanks to this post:
https://www.falatic.com/index.php/172/usb-serial-devices-and-the-unexpected-side-effects-of-serial-enumeration-bsod-with-solutions
The default CP210x drivers that come with windows use an USB enumeration mode - that is if the drive detects an M character, a legacy mode that thinks it's a USB mouse kicks in and screws everything up.
This driver solved the issue:
http://www.silabs.com/products/mcu/pages/usbtouartbridgevcpdrivers.aspx#windows
Download VCP (5.3 MB) (Default)
Now the IDE connects directly top serial without issue!