Intriguing concept! Having the cursors move at the same time as the player and also act as obstacles is a nice design decision!
I feel like right now, it’s not restrictive enough, though, if that makes sense? Like, it’s really hard to ever get into a losing state, so most of the puzzles can be solved semi-arbitrarily shuffling the characters around until they line up in a good way. Also, you rarely need to plan ahead.
I’m not sure how to make the levels more restricting, but I bet there are ways without compromising the main idea too much. Maybe you could make it so cursors can only pick up boxes once? Or actually have a fail state when a cursor and the player collide or something like that? I’m not sure, but there are certainly things you can try.
Full disclosure, though, I am a fan of hard puzzle games, so the puzzle difficulty I like in games is not necessarily the one a broad audience would also like. For a jam entry, definitely a very solid proof of concept!