When there is a sign in your hot bar, the aiming cursor turns into a box (selected as your active or as a non-active).
If the sign is in your inventory, there is no visual bug.
Whether you are in creative/survival does not seem to change the effect. It seems to be visual only, your cursor is completely functional otherwise.
I am using the faithful texture pack, which was my immediate thoughts. However, why does it show only with a sign in hotbar?
(See attached images)
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