I'm attaching 2 photos of the mouse pointer that I've seen on both a PicassoIV card and a Cybervision64 card running with P96.
One image is the pointer over a grey background and is good. Once I hover the pointer over a white area of the screen the outer fringes of the pointer graphic disappear.
I have not set the SOFTSPRITE (so I assume that is "No" for default)