Hi, good day!
The mouse cursor issue you’re experiencing has now been acknowledged by Microsoft as a known issue affecting Windows 11 25H2 and 24H2 following the installation of KB5120998 and later updates.
Microsoft is currently investigating the issue and recommends submitting a report through the Feedback Hub to help with the investigation.
For the latest information, see Microsoft’s Windows 11 release health page:
Please try to uninstall the recent KB5120998 update.
If this fixes the issue, please try to temporarily pause updates to prevent it from reinstalling.