Mouse flicking back and forth causing vscode to hang

Does this issue occur when all extensions are disabled?: Unknown yes

• VS Code Version:

Version: 1.66.0
Commit: e18005f0f1b33c29e81d732535d8c0e47cafb0b5
Date: 2022-03-30T05:50:41.156Z
Electron: 17.2.0
Chromium: 98.0.4758.109
Node.js: 16.13.0
V8: 9.8.177.11-electron.0
OS: Linux x64 5.4.0-107-generic

• OS Version: Ubuntu, XFCE

Steps to Reproduce:

Reproduction case: https://github.com/microsoft/vscode/issues/146993#issuecomment-1131470956

I have no idea how to reproduce, I was clicking around in the file explorer when my mouse started flickering, including an icon on the side. it completely locked up and I had to terminate the process. When terminating it didn't respond to the kill signal, so I had to force it to close.

It seems there is a back-and-forth race condition for setting the pointer style somewhere.

Here is a GIF demonstrating the behaviour observed:

Note that the speed of the flickering was much faster, and it is due to my recording software that you cannot see it flicker fast regularly. I am in fact trying to click on different parts of the application, but as you can see no click is getting through.