v41.4 - white mouse pointer & text insert bar is back in Monterey 12.3
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2018 Mac mini and LG Ultrawide Display on DisplayPort v1.2; flux 41.4. Updated to 12.3; that night I noticed the white arrow again for the first time in a long time. There are other wonky display issues in 12.3: I had to revert to DP 1.2 from DP 1.4, which was showing no output on the display. The display problems started with no video after wake from display-sleep, then eventually I had no video at all using DP 1.4.
The white cursor is dependent on the Color Profile selected for the display. When I selected a second profile I'd configured some time ago, the white arrow dimmed as expected. Switch back and the white cursor reappeared.