I'll try to get a small example later. Although I just was doing some testing in C3D2017 and the cursor changes as expected. So decided to check C3D2015, it works fine there, too. So may be just a 2016 issue, or even specific to SP2? Based on this, I don't think I will worry about it since it doesn't appear to be my code causing it.
Thanks for looking, guys!.