Symptoms

When I enable Automatically move pointer to the default button in a dialog box option in Control Panel > Hardware and Sound > Mouse > Pointer Options after getting a dialog box the mouse pointer does not move automatically to the default position, it stays in the same position.

Cause

Windows virtual machine misconfiguration.

Resolution

Please change the following setting to be able to use Snap Pointer To Default Button feature.

Open the virtual machine's configuration > Hardware > Mouse & Keyboard > Mouse > set it Optimize for games.