I’m new to the game so I’m not sure if this was a problem in older versions but the cursor was janky for me too. Also I’m using a gamepad so this might not apply but the way I fixed it was to bind each stick direction in Steam controller bindings to the desired cursor direction (I use a shift key to enable it).
The trick though is that you need to use activators. In the controller bindings I use 2 activators for each cursor direction. Button press activator fires the cursor move binding, Button release activator fires the “Cursor stop” command which is shift-Y be default.
Cursor works perfect for me now I move it with the right analog stick while holding Left bumper as the shift function.