We had a similar problem. Turns out that the root widget of a canvas panel is default to ‘no cursor’. You have to change that. I think the idea is that one might pop a panel but still want mouse clicks on the 3D background word. (like the Unreal Editor does). So all that transparent space expects to have some kind of 3D cursor, not the 2D menu cursor. (In my humble opinion the default should be set to true.) The previous answer is also valid. You DO have to set the cursor on etc. when you popup the overlay.
3 Likes