1) Did this problem not occur in a Ubuntu release prior to 16.04?
Ans. Yes it occurs in 15.10 too
2) If you change desktop environment (ex. GNOME Session Flashback as per 
https://help.ubuntu.com/community/GNOMESessionFlashback ) is this still 
reproducible?
Ans. Yes the problem is reproducible in GNOME Session Flashback

Also tested the latest upstream kernel, bug still exists

** Tags added: kernel-bug-exists-upstream-4.8-rc5

** Changed in: xorg (Ubuntu)
       Status: Incomplete => Confirmed

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https://bugs.launchpad.net/bugs/1610666

Title:
  Mouse cursor moves choppy/doesn't update its position as it should

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