What on earth is this? Is it some accessibility feature for controllers? I sometimes randomly keep triggering whatever hotkey that enables this in-game accessibility feature and it leaves me stuck because it’s not letting me move my character.
Gui navigation, largely intended for gamepads but also useful for other devices where fine motor control is not expected or available (e.g. lack of a mouse). You may have tripped the keybind that was added to toggle this feature for keyboards - press backslash to exit navigation.