Implicit casts from VARCHAR to NVARCHAR in the execution plan occur. Updates to the parameter definition from NVARCHAR to VARCHAR in the query, sees the index hit without the implicit cast, and the query reads drop significantly. Tested this on a few different queries and found SIGNIFICANT performance improvements by changing the parameter type.

In one test logical reads dropped from 10k+ to 22. In another (included below) logical reads dropped from 5.6 million to 3965, CPU dropped from 10k to 547, and duration dropped by a factor of 6