Okay then the one build I have, rendering in the video above, must be some weird mixture or something. It is using the stock DLL but I can definitely move the mouse and play the game with the mouse, but it doesn't move any of the blue or red cursor. There is like a really tiny dot that moves and shows you where the cursor is.
Blue and red cursors are created by the ReShade shader.
If the package you got had the V3 custom dll, then you must have Reshade files also (
reshade-shaders folder,
ReShade.ini and
d3d9.dll. Renaming or removing the d3d9.dll file will prevent ReShade shader from loading, thus removing crosshairs.
That's why those crosshairs are not controlled by the game's code
As for small dots and mouse, it may be that debug mouse was activated somewhere in the config files or in the game. It was not existing when the game surfaced few years ago...
But still, DS won't work with the stock dll
I had a quick look at the stock dll functionalities, and the game call it to define Vsync, Hsync and a "video mode" (look like choice is 640*480, 512*384 or 640*240(!!??))
On the original hardware, those values are set by switches on the electronic board
On the cutom dll, video mode is fixed to the first one (640*480)