FYI to everyone, i discovered that this is related to my using SteelSeries ExactMouse tool, which I use to turn off the acceleration to the mouse cursor which is applied by macOS. For some reason, the only place where I see issues is Parallels Desktop. When the mouse acceleration is off, I can use my mouse freely in the OS everywhere, but parallels macOS and Linux guest VMs exhibit this behavior. The workaround is to use this boot arg:
Code:
devices.usb.speed.mouse=high
I hope if someone from QA at Parallels can see this, the problem can be replicated by installing the SteelSeries ExactMouse tool and turning "ExactMouse: On", which removes the macOS acceleration curve on the pointer. I think the right thing to do is for Parallels to use the mouse cursor input correctly so this is not an issue for people, especially since one of the use cases of Parallels is people who want to play PC games with a non-Apple gaming mouse.