Yeah, there is an issue with the bikes that I couldn't figure out. I know that is the problem but I looked at all the settings and nothing looked wrong. However, if you have a good graphics card, it's only a minor hiccup. Sadly I couldn't get it to work on my laptops. I want to optimize more, but I didn't want to delay the release, especially since it's a high end demo and I might have to compromise the graphics to get it to run on older machines.
I am considering making a low spec version. Maybe reducing the textures from 4K to 1024x1024 and seeing if I can fix the bike (or just remove it if I can't). I should be able to get to 30 fps on laptops, but this will take maybe a week or longer. Also, because I exported as GLB, I have limited ability to edit the models and textures in Godot. I would have to fix it in Blender, and then re-export, but I've made a ton of changes and this would basically be starting from scratch. So it wasn't worth it, but I can consider doing a separate build.
Yes, you cannot play the demo and move around with the menu open. This is because the menu uses the mouse but the camera requires the mouse to be locked (otherwise you could go outside the window). I could add some text to the menu that makes this more clear. Also some people on Reddit didn't even know there was a menu (I thought all games used Escape, and it says it on the Itch.io page) but I might have to add a message for that too.
In terms of the frame drops. Godot 3.4 uses frustum culling (basically objects outside the bounds of the camera perspective are totally hidden). This is a basic optimization for all games since OpenGL was around. However, Godot 3.4 doesn't have occlusion culling. This means when you look at a large scene, all the objects (even ones that are hidden) are drawn. This can be an issue, let's say you are on the side of a house and close up to the wall. In most modern engines, it will only draw the wall and hide everything else. But in Godot it will draw everything, all objects inside the house, even trees that are behind the other side. So this is a big reason for slow performance. Godot 4.0 will fix this.