Microsoft has confirmed that the Windows 11 optional update KB5120998 is breaking mouse cursor personalization settings. Released August 27, the update introduced useful features like a movable taskbar and resizable Start menu, but it is also resetting custom cursors to an oversized default one. Users report that color and size settings fail to stick, and some have encountered accompanying wallpaper issues.

The company updated its release health notes, stating that cursor settings are "being changed or reverted to certain standard settings" following the update. Microsoft acknowledges the issue affects specific hardware or display scaling setups, with reports accumulating on Feedback Hub and Reddit. While not every user is impacted, the volume of complaints suggests a widespread problem.

Microsoft states it is investigating the root cause. Until a permanent fix is released, the only solution is to uninstall the update via Settings > Windows Update > Update History. Since the update is optional, removing it will not affect this month's security patches.