Move your BT mouse over the window and see it do 60-70hz. Then use the trackpad and see it's 130hz.
The prevailing Internet wisdom says that this is a result of Apple's poor choice of BT hardware and to just use a USB mouse or dongle - but this is crazy.
Windows laptops do not have this problem. I have a hard time believing that my midrange Lenovo laptop has such substantially better BT hardware than a MacBook twice the price.
It's got to be software. Has anyone figured out a fix or a hack?
However, I don't know which update, but the latency has been much better. Not perfect yet. But usable.
I wonder if this issue is what you're describing.
https://www.clickspeedtester.com/mouse-polling-rate-checker/
Using an M1 Max with Promotion (120hz) display:
- Logitech BT mouse - 60-70hz
- Logitech USB mouse - 125hz
- Trackpad - 130hz