The post seems to be AI generated but the issue exists. I run into the same on 26200.9278: whatever mouse cursor/theme I set in new settings app or the old control panel, it does not work. My regular cursor seems to be locked into aero_arrow_l.cur and also other cursor state does not match my settings.

What does not work:

• Set theme in Settings/Customization.
• Select another cursor preset in control panel.
• Switch cursor color white/black/invert in Settings/Accessibility.
• Change cursor size in Settings/Accessibility. It just enlarges the already large cursor.
• Logout/reboot. The large cursor is also used before login.

Finally GPT generated this script seems to be a workaround, although I do not fully understand:

& {
    # Load Win32 cursor APIs.
    Add-Type @"
using System;
using System.Runtime.InteropServices;

public static class CursorNative
{
    [DllImport("user32.dll", CharSet = CharSet.Unicode, SetLastError = true)]
    public static extern IntPtr LoadCursorFromFile(string lpFileName);

    [DllImport("user32.dll", SetLastError = true)]
    public static extern bool SetSystemCursor(IntPtr hcur, uint id);
}
"@

    # Read the currently configured cursor scheme from the registry.
    $cursorSettings = Get-ItemProperty 'HKCU:\Control Panel\Cursors'

    # Registry value name -> Win32 OCR_* cursor ID.
    $cursorMap = [ordered]@{
        Arrow       = 32512  # OCR_NORMAL
        IBeam       = 32513  # OCR_IBEAM
        Wait        = 32514  # OCR_WAIT
        Crosshair   = 32515  # OCR_CROSS
        UpArrow     = 32516  # OCR_UP

        SizeNWSE    = 32642  # OCR_SIZENWSE
        SizeNESW    = 32643  # OCR_SIZENESW
        SizeWE      = 32644  # OCR_SIZEWE
        SizeNS      = 32645  # OCR_SIZENS
        SizeAll     = 32646  # OCR_SIZEALL

        No          = 32648  # OCR_NO
        Hand        = 32649  # OCR_HAND
        AppStarting = 32650  # OCR_APPSTARTING
    }

    foreach ($entry in $cursorMap.GetEnumerator()) {
        $role = $entry.Key
        $ocr  = [uint32]$entry.Value

        # Get the .cur/.ani path configured for this cursor role.
        $path = $cursorSettings.$role

        # Some default roles, such as IBeam or Crosshair, may intentionally
        # have an empty registry value and use a built-in Windows resource.
        if ([string]::IsNullOrWhiteSpace($path)) {
            Write-Host "[SKIP] $role - no custom cursor file configured"
            continue
        }

        # Expand values such as:
        #   %SystemRoot%\cursors\aero_arrow.cur
        $path = [Environment]::ExpandEnvironmentVariables($path)

        if (-not (Test-Path -LiteralPath $path)) {
            Write-Warning "[FAIL] $role - file not found: $path"
            continue
        }

        # Load the cursor directly from disk, bypassing the Windows
        # cursor-scheme loader that appears to be selecting the wrong
        # large cursor variant.
        $cursorHandle = [CursorNative]::LoadCursorFromFile($path)

        if ($cursorHandle -eq [IntPtr]::Zero) {
            $win32Error = [Runtime.InteropServices.Marshal]::GetLastWin32Error()
            $message = [ComponentModel.Win32Exception]::new($win32Error).Message

            Write-Warning "[FAIL] $role - LoadCursorFromFile: $win32Error ($message)"
            continue
        }

        # Replace the corresponding system cursor for the current session.
        $result = [CursorNative]::SetSystemCursor(
            $cursorHandle,
            $ocr
        )

        if (-not $result) {
            $win32Error = [Runtime.InteropServices.Marshal]::GetLastWin32Error()
            $message = [ComponentModel.Win32Exception]::new($win32Error).Message

            Write-Warning "[FAIL] $role - SetSystemCursor: $win32Error ($message)"
            continue
        }

        Write-Host "[ OK ] $role -> $path"
    }
}

Hi there! if you recently updated Build26220.9223 or similar insider update, you may find your cursors had been like rolled back. It is informed that Microsoft is trying to fix this.