Hi,
ok, I see. it's not about the cursor here, it's about dispatching in order to display the right cursor. And indeed there is a flow in the process.
Basically: in "Target Type Changed", instead of checking if "picked" is null, you should simply send the event "PickedNothing", because if the action "Game Object Tag Switch" did not detect any wanted tags, then it means we default.
I have attached a corrected version.
bye,
Jean