I have the same issue where graphics & cursor don't update while The Sims 4 is in focus.
I tried a fresh install from Steam, but every time I open the game the graphics are frozen. I can use the start button on my keyboard or alt-tab to switch away from TS4, and when I come back the new screen will appear (e.g. the menu with the "Nature is calling" banner). The music plays and it responds to some input, but the screen does not update frame-to-frame including the cursor.
I'm able to use my touchscreen to close one pop up, and the "click" sound plays, but the box doesn't go away until I alt-tab, look at a non-Sims display, and then switch back to the Sims window.
I tried restarting the game and the laptop, reinstalling, closing every app, deleting my folder in "Documents," etc., but the problem does not resolve. I would assume it was an issue with my laptop, but I've never experienced this with any other game or application, and I have played Sims 3 and 4 in the past. I have a Surface Pro 7 with Windows 11 that meets the Sims requirements. Processor is i7.
I tried one more time just now before posting this comment, and at first it didn't work, but then for a moment it let me navigate through the menu. The problem resumed in less than one minute though, so I was not able to change any settings or open a save file to play the game.
To be honest I had this problem a year ago and just gave up, but I would really like EA to fix this so I can play their game.