This has been happening to me for some time with Caja. Sometimes, it enables file selection (same thing when I select files while holding the Control key). It goes into this weird state where I can't even open up an another app.
Is there a shortcut to trigger this behavior is is it a bug in Caja?. Only solution I got is restart the system and it's so annoying.
Sounds like Xorg (the display server) gets stuck with Caja, it is a weird state where the mouse pointer moves around but it's somehow got "locked" to a program, so clicking doesn't work, but the keyboard should.
Instead of restarting the system, you should be able to restart Caja by pressing Alt + F2 and typing:
caja -q
or:
killall caja
followed by Enter.
Though I'm not sure what exactly is triggering this issue - are you selecting a bunch of files and dragging the selection to another window, and the mouse cursor gets stuck?
Mouse cursor doesn't get stuck. It's the Caja window itself. Also, it's happening inside a single window. I can move mouse cursor freely but all it does is select files (keep selecting files like i'm holding control)