Yes your VM is running in tablet mode:

  Bus 001 Device 002: ID 80ee:0021 VirtualBox USB Tablet

so that might be one reason why the host isn't showing cursor changes.
In tablet mode, the cursor you see generally remains that of the host,
not the guest.

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https://bugs.launchpad.net/bugs/2142717

Title:
  XDefineCursor does not change cursor

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