Sleep mode only locks computer after reinstall?

In Control Panel / Power Options /Advanced settings

make sure USB Selective suspend is set to disabled
check that multimedia is set to allow the computer to sleep

a wireless mouse can cause problems...
These elevated CMD commands will disable the devices that can wake the PC

Powercfg -devicedisablewake "HID-compliant mouse <001>"
Powercfg -devicedisablewake "HID-compliant mouse"
Powercfg -devicedisablewake "HID Keyboard Device"

to make sure these commands worked re-run
powercfg -devicequery wake_armed

Also make sure you don't have an unsaved Theme.

I just tried all that stuff; none seem to work.
(also, my mouse is wired)

One thing that seems odd to me is in your Energy report it shows S1 AND S3 Sleep are supported.
On my systems I have only ever seen S1 OR S3 supported.

I don't understand how Windows would know which sleep mode to use.

I set S1 or S3 in the BIOS, and that is what shows in my report.
I'm not sure what you have in your BIOS for this.
You may want to check your BIOS setting for this.

Another thing you can check is the Event Viewer to see if you are getting the Sleep event after you click on Sleep.
It's Event ID 42 in System Logs - see my screen print.

In my BIOS S1 and S3 were set to auto (something like that).
Also, the event viewer shows the sleep event.

OK
From what I learned Win7 will default to S1 Sleep.

For me after the Sleep Event #42, the next System Event is #1.
You can see this in my last Screen Print.
Event #1 sets the Windows time - and that is the first system event when I wake up the PC.

What is your next system event after Event ID #42?
Maybe we can find a problem looking at your Event Log?

Given that you do get a Sleep Event, using a Sleep Trace may have the answer.
I've never used it, but I would for a situation like this.
Gathering a Startup, Shutdown, Sleep, Hibernate, or Reboot Trace