Found my solution to the problem I listed previously. To anyone else with this issue, @MasterKriebel found the fix: you need to patch your .exe again for the mod to fully take place. It works like a charm for me now! Thanks to him and all involved to make K1 fresh and new again.
I've posted his solution here for anyone to better find.
I did exactly this multiple times and still the mouse is off no matter what I do it still persists, I even started fresh and still.
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I did exactly this multiple times and still the mouse is off no matter what I do it still persists, I even started fresh and still.