Cursor disappears when running full screen XWayland apps

Affected version

• Arch Linux (kernel 5.14.3)
• Mutter 40.4
• Wayland session

Bug summary

I have an AMD GPU (Radeon R9 280X), running on amdgpu drivers. The bug happens when I enter full screen mode on any non-native Wayland program, such as Chrome/Chromium, or games such as Counter-Strike: Global Offensive or Splitgate.

Steps to reproduce

1. Open Chromium/Chrome
2. Press F11 to enter full screen mode

What happened

Mouse cursor gets invisible, but you can still click things.

What did you expect to happen

No invisible cursor.

Relevant logs, screenshots, screencasts etc.

While I was recording, the mouse cursor got duplicated in the video recording as soon as I entered full screen mode, so that was useless.