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When using Cursorless keyboard: if you set your cursor style to something other than the default value: line, (i.e. if you set it to block), Cursorless will reset the cursor style back to line after exiting Cursorless keyboard mode back to normal editing. Then the window must be reloaded to reload the user's cursor setting.
To replicate use this in your settings.json then enter and exit cursorless keyboard. The cursor will then be back to a line cursor.