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However, I’m not sure that it's actually a capcom issue. I believe it's more of a steam controller/configuration issue. I had this problem with my 360 controllers, I then bought an xbox one controller because the deadzones on the 360 controllers were a bit messed up and I couldn't fix them with steam. With the xbox one controller the problem disappeared but then I made the mistake of starting steam big picture and the problem floating mouse cursor returned.
I believe steam big picture prompts steam to recognise the new controllers and then it sort of inserts itself as an extra layer between xinput and the game and once that happens it's very difficult to completely undo that but to be honest I don't really know. Since there's no way to run the game without running steam it's very hard to prove it.
I've tried deleting all controller configurations manually from the userdata folder but it had no effect. Even disabling the xbox controller support in the controller option doesn't solve it.
I'd just really like it if Valve gave us the option (that actually works) to completely disable all steam controller meddling and just use pure xinput, which the vast majority of games fully support. Steam controller configuration is great if you have a ps4 controller or a switch pro controller but it sucks if you've got an xbox controller and don't need it to interfere.
Good thinking, but disabling in-game Steam overlay should always disable all Steam controller support. Yet the problem persists after I disabled the overlay and switched from my DS4 pad to an Xbone pad.
Maybe I’m barking up the wrong tree with regard to steam controller being the issue.
Yeah, I think blaming Capcom is the safe bet, judging by the general quality of the port.