I've just tested both 24.04 and 26.04, and the red cursor works
correctly here. Both in Xwayland and native Xorg.
This makes me think the problem is your VM. Perhaps the VM hasn't
captured the pointer (meaning it's running in tablet mode), or otherwise
just isn't forwarding cursor changes to the host.
** Package changed: xorg (Ubuntu) => ubuntu
** Changed in: ubuntu
Status: New => Invalid
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https://bugs.launchpad.net/bugs/2142717
Title:
XDefineCursor does not change cursor
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