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I have a few theories after editing this video... but I'll avoid potential spoilers :P . If anybody knows how to fix the mouse issue, I'd be very grateful :)

Thanks for playing. I can't seem to fix the mouse issue, but may tackle it again later this week when I've put out a few fires. For now, the only thing I can suggest is using a gamepad, as people don't seem to be encountering the issue with those.