[Stable 3.7] Cannot interact with the first application when a second one is open

[mario-aleo]

Your system information

• Steam client version: 1748301070
• SteamOS version: 3.7.8
• Opted into Steam client beta?: No
• Opted into SteamOS beta?: No
• Have you checked for updates in Settings > System?: Yes

Please describe your issue in as much detail as possible:

Since 3.7, on my Steam Deck LCD, whenever I open two applications, I can't interact with the first one opened if I switch to it, the cursor that is displayed on the first application is of the second one and if I try to perform a click using touch screen, touch trackpad or mouse, this action will take place on the second instead of this first shown on the screen.

Steps for reproducing this issue:

1. On gaming mode, open the first application (Example: Discord)
2. Go back to library and open a second application (Example: Overwatch 2)
3. Switch back to Discord, you'll see the Overwatch 2 custom cursor over Discord UI.
4. If you perform a click on Discord UI it will not trigger the action on Discord, instead it will take place on Overwatch 2.