The compatibility mode allows you to run a program in an older operating system. According to a few users, the issue disappeared once they’ve deselected Outlook to run in the compatibility mode ...

If running the game in compatibility mode did not fix the problem, try to run the game in 640 x 480 resolution and see if your cursor disappears while playing the game.

During Gamescom 2025, Xbox revealed a new Handheld Compatibility Program for its Xbox Ally and Xbox Ally X. It's potentially a more robust system than Steam Deck verification.