Altering the mouse polling rate from the mouse default value of 500 reports per second to the system default value of 125 reports per second solved my issue.
All of the three affected system had a gaming mouse attached (Logitec G400S) which uses a higher than usual mouse polling interval of 500 reports per second compared to the usual 125 reports per ...
System cryptography: Use FIPS compliant algorithms for encryption, hashing, and signing.
This secretly re-enables the older protocols again. Microsoft is even not recommending use of the setting anymore.
I've been fighting this as well. I haven't found the right solution yet.
Microsoft DOC on setting
Microsoft Article not recommending