I know, I can set the display mode to legacy capture mode, but then the host's cursor flickers continuously, which is anoying for the user on the host side.
When you enable the legacy capture mode, do you see a noticeable difference in speed/performance?
I also noticed that my cursor not allways follows the host cursor when the mouse is moved on the host side. Then when I move the mouse their cursor hops to the location my mouse is pointing.
This is by design. There is no feedback from remote cursor to the local one, only the other way around. It doesn't make sense because the remote user is not supposed to control your cursor - after all you both may need to perform different actions simultaneously.
For example, at the very moment when the remote user is doing something on their screen during your remote session you may need to move your cursor off screen - like your taskbar and do something else. So if your cursor will be locked on the Full Control screen this will be even more annoying than this hopping.