In order fix the mouse cursor problem with newer versions of proton i did modify "xbanish" for hiding mouse cursor logic. Tested in Wayland no problems yet to occur.

To Download and compile from github

wget https://raw.githubusercontent.com/kespenguen/lotro_hide/refs/heads/main/lotro_hide.c && gcc -lX11 -lXi -lXfixes lotro_hide.c -o lotro_hide

To Run

./lotro_hide

As long as the terminal instance is running mouse cursor should behave normaly in game.