The following flag FFlagInteractableStateForGuiObjects3 was enabled around the exact time we began getting reports, and I am hearing reports of people disabling the flag on their client and having things work again. This is affecting new servers in Jailbreak.
there’s also this issue in studio playtesting, where your cursor is the default Windows cursor, and you click to move the in-game cursor??? what the hell?
UPDATE: this fflag was NOT changed for some studio versions and appears to be a rollout, which for some reason results in this bug happening if you have it disabled
the only fix is to use a third party program to change those (studio mod manager)