Hello,
May I confirm that I have understood your issue correctly: The cursor on your local computer consistently maintains an arrow pointer and doesn't change adaptively (for instance, it doesn't transform into a hand symbol when interacting with clickable elements), but it behaves correctly during remote screen sharing sessions? Could you confirm if this issue with the non-changing cursor is accompanied by any other problems such as an inability to drag or click items?
Given that you've already checked and updated your mouse driver, a preliminary step would be to test with a different mouse to see if the problem persists.
Additionally, you can delve into the mouse settings through the Control Panel. Click on "Ease of Access", then "Change how your mouse works". Here, you can try choosing a new mouse pointer and check if the issue still exists.
Hope this helps.
Regards