PlayStation 5 Virtual/Wired/Wireless Mouse & Touchpad Delay

Date & Time: It has been a problem for me since 6.55 when I transferred to PS5, but there are reports of people having these exact issues way back in 2021.
Frequency: Whenever I use any type of mouse
World name: Seraph
Character: Mako Makomako
Retainer name: N/A
NPC name: N/A
Monster name: N/A
Class/Level: N/A
Party or solo: N/A
In-game time: N/A
Area and coordinates: Everywhere including Title Screen.
Housing: N/A

Steps:

Virtual Mouse:

1. Activate Virtual Mouse mode by pressing L1 + R3
2. Move Right Stick in any direction and you will notice a slightly delay when moving the cursor

Wired / Wireless Mouse:

1. Plug in mouse into the PS5 USB port
2. Move mouse in any direction and you will notice a slightly delay when moving the cursor

DualSense Touchpad:

1. Turn on DualSense
2. Aim with Touchpad in any direction and you will notice a slightly delay when moving the cursor

Additional Information:

Unfortunately, the only available fix right now is downgrading to the PlayStation 4 version. I did just that, and it works perfectly, without any issues whatsoever. However, I discovered that you can replicate the same problem the PlayStation 5 Version has by turning on "Enable expanded mouse functionality"

Below are the steps to replicate this delay in the Playstation 4 Backward compatibility Version:

1. Go into "System Configuration"
2. Go to "Mouse Settings"
3. Enable expanded mouse functionality
4. Move around any kind of mouse and you will instantly notice the delay, it becomes even more noticeable when you change cursor size.

This option comes automatically enabled on PS5 Version which for some reason there is no way to turn it off, and it's causing unnecessary uncomfortable input lag when aiming with all types of mouses, be it wired, wireless, even the virtual function or touchpad from an official controller.

How the menu looks like on Ps4 Version:

https://i.imgur.com/QTWkL2q.png

How the menu looks like on Ps5 Version:

https://i.imgur.com/lHqfWwl.png

Model Number of the PlayStation®5 You Are Using
- Model Number: CFI-1214A

Information About the Peripherals You Are Using
-Type: DualSense
-Maker: Sony
-Model Number: CFI-ZCT1W

-Type: Wireless Mouse
-Maker: Logitech
-Model Number: G305 LIGHTSPEED

-Type: Wired Mouse
-Maker: Redragon
-Model Number: Nothosaur M606

*All the peripherals above works perfectly on the Ps4 Version and other games.