This is still not fixed or is a regression in xenial. Should we re-open
or create a new request?

I can replicate this with keepass2 and virtualbox.

Replication steps:
1. Go to gnome tweak tool and change "Show location of pointer" to "ON"
2. attempt to use the ctrl key such as ctrl + c, all ctrl key combinations are 
swallowed.
3. Go to gnome tweak tool and change "Show location of pointer" to "OFF"
4. attempt to use the ctrl key such as ctrl + c, everything should work as 
intended.

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https://bugs.launchpad.net/bugs/9441

Title:
  the locate pointer option breaks other keybindings

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