I also just began to have this problem today. It was fine last night. I still see my mouse cursor, but I cannot highlight over a player and see their health bar (sucks for world events when I’m trying to throw out healing), nor can I click on an npc for the bank, shopkeepers, etc.
I DO see the cursor, I just don’t get any “mouseover” or “hover” options. I can still hit “F” to interact. Still no healthbars though.
Edit: I can mouseover things fine when I’m in my INV or in a menu, or crafting. It’s just out in the world, hovering over a player or npc, or an object out in the world (quest items, gathering nodes).
Thank you.