Mouse performance issue on VDA.
Complete the following steps to troubleshoot this issue:
Ensure to upgrade to the newest VDA software.
Open Control Panel and search for Mouse.
Under Mouse Properties > Pointers > Set Scheme to None.
Uncheck Enable Pointer Shadow.
Uncheck Allow Theme to change mouse Pointer.
If you are still experiencing the same issue then apply following policy to VDA.
Disable 'Legacy graphics mode'.
Enable 'Desktop Composition Redirection'.
'Desktop Composition graphic quality'. Start with low and test with different options. A VDA reboot might be required after the changes.
Disable 'Desktop wallpaper'.