I updated the project to 2022.2.20f1 the other day when I resumed working on it…
Doing method one by setting the cursor image in the project settings gives me a huge crosshairs of a cursor:
(I had to take the complete screen as doing just part of it would have hidden the cursor)
I also found an issue in that when I had the screenshot app open it changed the cursor back to the system’s arrow, and when resuming the game the customized cursor was gone…
(To some extent both issues might be special to my system running Kubuntu 20.04…)