it is not exactly 'cursor' you are talking about but rather the icon for file, between normal view and when renaming it, correct?
Icon? Now what's wrong with the icons? No, the other poster got it exactly correct:
I think @bornagainpenguin means the blinking cursor when editing the text
This is a problem. I can't think of any circumstances that you may want things to behave this way. It completely breaks usability. It is impossible to know where you are in the file name to do any editing or renaming. If the them somehow makes it out to the 22.04 LTS it's going to create a horrible impression.
Thankfully it appears fixable:
A workaround is to add a background to the cursor in css config of your theme
I'll give this a shot as soon as I can get to the laptop again. Thanks!
But this needs to be fixed. It looks horrible.