This is one of the main issues with Cursor Mode: AI “Pilot” Engages in Cursor Mode and Messes Up Flight - Bug Reporting Hub / Aircraft & Systems - Microsoft Flight Simulator Forums
Basically as soon as you bring up the virtual cursor, the AI messes up the flight. Pulls the throttle, banks the airplane randomly, etc. It’s only fine while the autopilot is engaged, but even that doesn’t apply to every aircraft. In short, if you don’t have a mouse the sim is borderline unflyable.
There are problems in the menus as well. Many UI screens don’t have the cursor (like in 2020), you can’t search anything in the EFB or on the world map, you can’t create flight plans. Again, without a mouse you’re locked out of many basic functionalities.