There are multiple older duplicates of this bug but I believe that they may be unrelated.
When using a single display:
After entering fullscreen in a menu the cursor does not hide when swapping into first person.
Also, if the cursor is hidden when entering fullscreen, i.e. when not in a menu, the cursor is invisible when navigating menus/ui.
When using multiple displays:
The mouse is always hidden.
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So, I have the same problem, when I press F11 twice, the cursor disappears completely. Additionally, when recording the screen, e.g. using OBS, everything looks great. I tried reinstalling the launcher, changing the version, removing Java (the one downloaded by the launcher itself) and still the same. (I'm attaching the video above)
I am currently using the Dev Windows 11 (Version 10.0.26058 Build 26058) insider release with an NVIDIA 2070 running version 551.61.