Yes that causes more than a couple of issues, especially when it comes to multi-monitor setups or playing in windowed modes. Though it does tell me that we were correct in assuming that the locking is what’s causing it. Though if that was the only setting that changed the behavior, we won’t be able to use it as a workaround.
Mouse locking is meant to keep the mouse inside the client as well as keeping it centered on a location and translating the movements to the application.