Check Windows Update → Optional updates and grab the latest Surface driver/firmware package directly from Microsoft's download center.
Confirm what sleep states are even available:
powercfg /a
If hibernate isn't listed, it's disabled at the firmware/OS level — not a setting you can fix from Power Options alone.
Check with powercfg /requests. This tells you exactly which driver/app is holding it awake.
Check with powercfg /a, and if missing, turn it on with powercfg /hibernate on.