The mouse cursor can be bugged in the game menu. This guide helps you on how to fix the mouse cursor (fitting) in Biomutant.
How to Fix Mouse Cursor (Fitting)
To fix mouse cursor, especially to fit it, you need to go to game menu:

Then, you need to find your the best solution to your monitor. For example, 1920×1080 full hd and fullscreen.
That’s it.
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