Mouse/Cursor Settings help
The way mine works (and has always worked) is this :-
When I press the mouse button down and start to move the mouse, the cursor disappears.
When I stop moving and release the mouse button, the cursor reappears in the same place.
This has always seemed perfectly reasonable since I don’t want the cursor to wander about when I am simply turning the character or looking round. (Actually, I’d prefer it didn’t vanish but simply stayed visible in the same place.)
If yours did something different, it sounds like there was something wrong that just got fixed.