I have the same problem. I upgraded from 3.0.2 to 3.0.4 and mouse cursor is not visible in video. When I downgraded back to 3.0.2, the cursor is visible again.
(Windows XP SP3, checked on two machines with the same OS).
Bingo! It works! Thanks a lot.Reset the preferences:
https://wiki.videolan.org/VSG:ResetPrefs