Coherence Mode - Can't use mouse after switching to Mac app

I'm on an M1 Max, macOS Monterey Version 12.1. I use Coherence mode in a Windows 11 Insider Preview instance. When I click into a Mac app, such as Slack or Chrome, I am no longer able to use the mouse when I switch back to the Windows app I was using. Sometimes I can remedy this by clicking on the instance in the Parallels Control Center, using my keyboard for 5-10 seconds, and then my mouse functionality in Windows returns.

This is extremely frustrating when I am presenting on Zoom and screen sharing a windows app, as it will lock up every time I click to mute or unmute myself.

Any suggestions here? I've reinstalled parallels tools, and even tried a fresh install of Windows VM. I am using the Apple Magic Trackpad.