From your DxDiag it appears that you have a racing wheel plugged in. Could you try unplugging all console controller/racing wheel peripherals and see if the game works fine afterwards?
In our experience, disappearing cursor/cursor changing into a reticle can be caused by non-standard controllers or a controller simulation software interfering with mouse input.
Please let us know if that helps!
In our experience, disappearing cursor/cursor changing into a reticle can be caused by non-standard controllers or a controller simulation software interfering with mouse input.
Please let us know if that helps!