Locally hosted game, fights cause cursor to appear and keyboard to lose focus

I've been exploring this for a few hours now. I started a locally hosted game with friends, which we haven't done since 20.1 (we normally use a hosted server) during combat the inventory cursor will appear on my client and my keyboard loses focus on the game until I alt tab out and then back in or attack. Mouse functions normally. I am the host.

My machine specs are i7-10750H, 32gb ddr4, RTX2060 on windows 10 (21H2 19044.1526)

  • Did you start a new game and re-create the issue? Yes, this only appears to happen when clients are connected or when zombies are pathing towards players
  • Have you validated your files through Steam? Yes
  • After validation, did you re-try with a brand new game? Yes
  • No mods
  • I have a log file but cannot see how to attach it, I'll try once submitted. 
 
To attach your log file, go to pastebin.com, copy and past the log there and it will generate a link which you will put in your post.

 
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