UMG Hover events not triggered when in window mode

When I play my game in windowed mode, with window-focus, the hover events for UMG buttons are not triggered.

However when I press shift-F1 to unlock the cursor, the hover events start happening again.

Is this a bug? A feature? Is there a way of stopping clicking from locking the cursor?

I found that the problem was that I had simulate touch from mouse set to true in the project settings.

Turning this off “fixed” the problem. I guess it makes sense not that hover didn’t work as it was simulating being on a touch device.