What remote software are you using?
I've been searching for a while now as I have a very similar issue on several games whilst using Splashtop. Haven't really tried anything else eas yet.
Can't rotate fully in First-Person games (tried Subnautica 2, Minecraft (so issue isn't just Steam games) and a few others ) and RTS or strategy games have a massive cursor offset or mis-alignment. Pretty much what you've described.
I'm not at all keen in plugging in separate keyboard / mouse and pass them through to the VM (which is what i fear is the solution will be) as I don't have a separate USB controller to pass through to each VM
Will continue to test and see what options I can figure out.