VM cursor graphics gets missaligned on mode/style switch with fractional scaling

[Gronsak]

I'm running several VMs mainly using virt-manager and when I have fractional scaling turned on for the monitor and the cursor switches mode/style, for example from the default pointer to the text I-beam or resize arrows, it gets misaligned from the actual mouse position inside the VM viewer/console.

In the video bellow, when the cursor switches mode I'm only holding and releasing shift inside nvim and not moving the mouse at all.
https://github.com/user-attachments/assets/9e92b1f4-82ee-40e1-810e-4bfa08fb42f4
The guest uses SPICE for graphics, absolute mouse positioning from the host and the cursor is running in client mode mouse when this issue is occurring (the issue dissapears if I fullscreen the viewer which switches it to server mode but that also decreases the responsiveness of the cursor).

I've tried it in several guest OSes, both Linux and Windows, and both virt-manager and virt-viewer with the same result.
Also tried it in KDE Plasma on Wayland with the equivalent scaling set but without experiencing the issue.
So the only common denominators I can find is SPICE and Hyprland.

Anyone got any tips on what I can do to mitigate this issue or to further narrow down the culprit?

[Gronsak]

I have no idea of how to troubleshoot this further or how to check if the issue is really with Hyprland or if it's something to do with either Spice or Virt-Manager so any input on how to troubleshoot this further would be appreciated