I tried to see if this behavior would happen in Safe Mode but when I left my cursor alone it did not show the hourglass next to it.
When I l restarted the computer to exit Safe Mode and logged in again I tried uninstalling and reinstalling my touchpad drivers. Then I connected a mouse to my computer. Both times I kept seeing that hourglass. Then I returned to Safe Mode again but with the mouse connected. There, the cursor did not have the hourglass popping up from time to time next to it.
Then I restarted again to leave Safe Mode and login to my account. I ran the following commands in PowerShell as an administrator: DISM /Online /Cleanup-Image /RestoreHealth SFC /SCANNOW
Windows did find corrupted files and fixed them but this did not fix the cursor issue. Tried scanning for malware with MalwareBytes but it did not return anything.
Finally I got Process Explorer and looked to see if there were any processes behind the scenes that might be causing my issue. After several tries I noticed that AsusFramework would appear repeatedly then close. I'm wondering if this is related to Armoury Crate. This seemed to also happen at the same time with the cursor behavior.
Has anyone else noticed this kind of behavior and if so how did you fix it?