After battling with this for several days I finally found a solution. I found an app called Mos (free and open source) which allows you to tweak macOS’s mouse scroll settings per application. Here are the settings that I am using which feel really nice!
It’s a shame that macOS has such crap support for 3rd party mouses. I also tried an app called Smooze Pro which helped with other apps but not Figma. Mos seems to work better in most cases so far.