MacOS 14.3 introduced a new issue where releasing left click would cause the cursor to 'jump' a certain distance depending on the current speed of the cursor (faster=further jump). Additionally, there was smaller, less noticable lag while holding left click.
The only thread I could find about this online was this, which offered no real solution
People with different external mouse issues reported that switching to the latest beta branch (14.4 beta 2) fixed it. That did ""fix"" the left clicking issue, but moving an external mouse now increases cpu usage anywhere from 20-30%, which causes the cursor to lag when doing any sort of performance intensive task.
This is unrelated to the mouse itself, as I have tried on 3 different mice (wired and wireless). It also does not occur on the built in trackpad.