Sluggishness affecting mouse but not trackpad

Describe the bug
I am experiencing some UI sluggishness with BTT enabled that affects only my USB mouse but not my Magic Trackpad 2. With BTT disabled, the sluggishness does not manifest.

A couple of examples:

First, when gliding up and down a menu for any app, the highlight is slow to catch up with the mouse pointer, and some highlights are skipped. With BTT disabled, the highlight follows the pointer effortlessly and smoothly.

Video with BTT disabled:

Video with BTT enabled:

Second, moving a window around the desktop is similarly slow and jumpy. The window does not glide around smoothly with the mouse. With BTT disabled, the window moves around effortlessly.

The result is the same with or without the priority helper tool.

Other actions involving the mouse are similarly affected (e.g. selecting icons on the desktop).

Magic Trackpad 2 does not exhibit the problem.

Are they any settings that would specifically affect / conflict with only the mouse?

Affected input device (e.g. MacBook Trackpad, Magic Mouse/Trackpad, Touch Bar, etc.):
USB Mouse
Magic Trackpad 2 is fine

Device information:

  • Type of Mac: iMac17,1
  • macOS version: 10.15.2
  • BetterTouchTool version: 3.262 (1439)

Additional information (e.g. StackTraces, related issues, screenshots, workarounds, etc.):

Do you have any other mouse related app installed? I think there have for example been some conflicts with an app called SteerMouse.

I don't have any other mouse-related apps installed.

After updating to 10.15.3, the issue seems to be resolved. I will continue to monitor.