Koi
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Touch controls don't work in the bottom area of a Steam deck device
https://youtu.be/GfriywTYOQ4
https://youtu.be/T58fw91yImw
Looks like the cursor is bounded by the steam deck, so the issue can't be that something invisible hovers over the game area.
Similar issue: https://steamcommunity.com/app/314010/discussions/0/611704531885049335/
A resolution dropdown could allow players to fix this themselves, although that wouldn't be ideal.