1 - Is it possible to have animated cursors? If so would I need to animate it programatically?
2 - I created a custom cursor for testing purposes, but every time I hover an UI element it falls back to the default cursor? How can I control these behaviours?
AFAIK you can’t prevent UI elements from changing the cursor. But you can set the cursor every frame, see if there’s an event that fires when the cursor changes and listen for that to reset the cursor back to what you want.
As for animating the cursor, you’ll have to change the cursor to the next frame of animation e.g. every RenderStepped.
You can also make your own custom cursor from scratch, which is useful if you e.g. want to control the cursor position on the screen.