Mouse input (cursor) shows black screen with flashing cursors.

Summary:
Having a keyboard and mouse connected. Whenever there is directional input by the mouse and the cursor should show, the screen goes black and the cursor starts duplicating. The os overlay also starts flashing at occasions.

Steps to reproduce:
1 Make sure to be on build Xbox OS 10.0.16287.1002 (rs3_release_xbox_dev.170910-1900)
(this is a beta os soon to be released to the public, possibly other os builds have the same
issue)
2 Attach a mouse and keyboard
3 Start minecraft and move the mouse.
4 The screen now goes black the cursor starts to duplicate
Note:
Also the os starts experiencing flashes when minecraft is active and the home button is pressed.
This issue doesn't occur for me on the current retail xbox dashboard on a other xbox.
The game remains unplayable when the mouse is attached, until the mouse is removed and the system rebooted.

Images showing the issue:

Video:

Possibly the issue should be communicated with Microsoft before everyone is affected by this dashboard update.