Increased latency of domain when I turn on "proxied" in Proxy Status in my DNS settings

I am running my production app api on this domain "prod.example.app". I have noticed delays of roughly 100 to 200 ms when I enable Proxy Status to "Proxied". I have verified this multiple ways.

I have even added cache rules/page rules to avoid all caching and it does show cache status as "DYNAMIC" which means it being bypassed but then why is the responses slow in general then ?

It just works fine of static content. Example: when I hit https://prod.example.app/folders/staticfile.jpg it just works fine and returns me the file in like < 200ms but then when I hit some GET API's on the same domain like: https://prod.example.app/api/v1/news the response time increases to 300-400 which generally without the proxy status - "proxied" is like always < 250ms

Is this normal for CF to do this ?
I need to have "proxied" on since I want to hide the actual Cname record of my amazon load balancer
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