I too experience the cursor disappearing every now and then only on Alacritty! It is so hard to reproduce this issue so I never managed to issue a bug report or to diagnose it (and that’s why it is so annoying), thanks for sharing this issue here.
I just rebooted my system with the same change and I’ll update here if it worked for me. I’m using GNOME on nixos-unstable, and I’m not using Zoom (an app which I’d suspect acts fishy either-way).
Previously used WLR_NO_HARDWARE_CURSORS environment variable has been deprecated. Do not set it in your configs. Use cursor:no_hardware_cursors instead.
I’m using Gnome too and I used to have this issue with either Wezterm or Kitty, but I don’t remember how I exactly solved it. It might have been home.pointerCursor.
Hyprland desktop and kitty uses this (does not require restart when run in terminal - theme persists across restarts, but not size. Nothing written to any config file I could find):