I had the same issue with my Lenovo Yoga 700. The problem was related to the screen scale. By default was 150%, I changed to 125% and everything was solved, but any scale different from 150 seems to work.
Hope it helps you.
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I've had this issue for a while and no amount of updating or rebooting seems to make it go away.
This is for a Lenovo flex 5 laptop with Windows 10 home.
Once in a while, for no reason that I can discern, the mouse pointer changes appearance, to a low-resolution version of a pointer with a blue circle above, as seen here :
The image of this cursor is also misplaced : while I can still use the mouse properly, the image of this cursor is about halfway further up the screen, making it difficult to know where the cursor physically is.
I have no clue as to the source of this bug and googling it is fairly difficult. Does anyone have any idea what might be causing this issue?
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I had the same issue with my Lenovo Yoga 700. The problem was related to the screen scale. By default was 150%, I changed to 125% and everything was solved, but any scale different from 150 seems to work.
Hope it helps you.