Thanks for sending the diagnostic logs.
We noticed that on your second diagnostic info, your iPad client was assigned to Wall2 / WallIndex set to 2.
And that’s why it’s displaying a zoomed in imagae because the screen is only displaying the 1152×864 portion of the Videowall 2 which has 4K resolution (3840×2160) by default.
Try to right-click the client connected in the spacedesk Driver Console and select -> Unassign, to switch it to extension mode then the touch should work again.
FYI: The touch screen on spacedesk currently not supported if the viewer/client is assigned to a Video Wall.