I use a custom build of Wine to run games on Linux Steam because this allows in Wayland to reduce latency compared to Proton, which operates through the XWayland layer. This is the first game to have problems with the spinning cursor. I can assume that the problem is that the game does not correctly process RAW MOUSE INPUT messages with the MOUSE_MOVE_RELATIVE flag, and supports MOUSE_MOVE_ABSOLUTE. Also XWayland, compared to Wayland, sends RAW MOUSE INPUT messages with the MOUSE_MOVE_ABSOLUTE flag. In the game menu the cursor moves normally.
Video: https://drive.google.com/file/d/1WRZZD0whER3ibOo28fN4rPP-UasMBu93/view?usp=sharing
RAWMOUSE (winuser.h) - Win32 apps
Contains information about the state of the mouse.
learn.microsoft.com
Video: https://drive.google.com/file/d/1WRZZD0whER3ibOo28fN4rPP-UasMBu93/view?usp=sharing