that I see these symptoms sometimes, and it is confusing when it happens. I'm not quite certain whether this is the only way to trigger it, or indeed the way I myself trigger it, but I see the symptoms above once in a while during normal use, and I've found this test case reproduces the symptoms reliably. Anybody else aware of other ways to trigger it?
I have noticed this effect to (rarely), but did not found a way to reproduce it.
The way you described does not work here to recreate it. I can't move the mouse cursor out of the xterm with the button pressed. I'm not using multiwindow, maybe that's the difference.
Holger