Issue with mouse started happening suddenly

Since yesterday I am having an issue with my mouse. When I start geforce now, everything is fine initially, until the game loads - so for example when just the steam window pops up, I can move the mouse fine.

As soon as the game loads though, my mouse becomes super slow and stuttery. I would have to drag it across my entire xxl mousepad to get it to move a little bit. This started happening yesterday, and the only way I can fix it is by uninstalling GFN and installing it fresh. Then it will work for the entire session - but after next reboot of my PC I have the same issue again and would have to reinstall GFN again.

This started happening yesterday morning after a power outage but I doubt it is related since it reappeared now today.

Any idea how to get this properly fixed? I was able to play for several weeks without this ever happening before, even multiple sessions/reboots per day.