Created an account to note that i’m also having this same issue in Fedora KDE since the recent Plasma update. Did not experience anything like it before. Here’s my system info.
Operating System: Fedora Linux 42
KDE Plasma Version: 6.4.0
KDE Frameworks Version: 6.15.0
Qt Version: 6.9.1
Kernel Version: 6.15.3-200.fc42.x86_64 (64-bit)
Graphics Platform: Wayland
Processors: 16 × 12th Gen Intel® Core™ i5-12600K
Memory: 16 GiB of RAM (15.4 GiB usable)
Graphics Processor: AMD Radeon RX 7900 GRE
Manufacturer: ASRock
Product Name: Z690 Phantom Gaming 4
A few notes.
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It’s happening on a monitor connected to my linux desktop with DisplayPort. It’s not happening on that same monitor connected to a different computer via HDMI, or on a different monitor connected to my linux desktop via HDMI.
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I also get the double mouse cursor + flat color flickering on the display below the mouse cursor as OP described. However, the “flicker” is not consistently grey for me. It seems to depend on the color under my mouse cursor. For example, when i was trying things in display settings to fixed this, and clicked into a dropdown, the “flicker” would be the background color of the drop down. likewise, it sometimes happens just when i’m moving my mouse on an empty desktop, and the flicker would be a color from my wallpaper.
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The flicker only happens when i am moving and clicking my mouse on the impacted display. It doesn’t happen if i am not using my mouse, or if I’m using it on the other display. It also doesn’t happen if i do something with my keyboard alone on the impacted display.
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EDIT - scrolling with my mouse wheel on this page VERY consistently triggers it. I’ll get the double mouse cursor immediately when i start scrolling the wheel, it’ll stay there as long as a keep scrolling, and when i stop it’ll flicker a few times.
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EDIT 2 - Seems to be related to high refresh rates. It happens when i run the display at 144 or 120 hz, but not at 60 hz.