Thanks TwistedTwigleg, yeah I tried both of those methods with no luck. They both produce a black image where there is transparency, those being
-Using project settings
-Using a script
I've been digging around github bug reports and various things and it looks like a couple of other people are running into a similar problem, but it looks like the bug hasn't been resolved yet in the current stable release:
Here are the links:
-"Cursors set with transparent textures have visual issues on Windows. #21745"
-"Strange way to hide cursor with mouse modes #27889"
I'm gonna make a bug report of my own on github and hopefully draw some more attention to it, or perhaps someone on the code team has a solution, but in the meantime, I'm just hoping someone might have some special work-around they could recommend, perhaps something involving resources and textures that they might have run into.
Perhaps someone familiar with Godot open source code could help me find a quick solution that is pointing to something simple within the source code. I'll be on the Discord chats and reddit forums, too.
Until then, I'll probably just use a 1x1 image and try and use something that will blend in with the underlying marker that I'll eventually end up using in my game.
I mean, really, it would make sense if I could just set both HIDDEN & CONFINED, and especially if that were an option in the source code, perhaps create a 5th enum.