With the workaround from above I'm still facing the same problem.
My xorg.conf
Section "InputDevice"
Identifier "Configured Mouse"
Option "Device" "/dev/input/mice"
Option "Protocol" "ExplorerPS/2"
Option "SendCoreEvents" "true"
Driver "mouse"
Option "EmulateWheel" "true"
Option "EmulateWheelButton" "2"
EndSection
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[Hardy] External mouse on laptop will only double-click
https://bugs.launchpad.net/bugs/188351
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