Long story made short: Microsoft isn't supporting CMD.EXE or the granular APIs behind it any longer.
This means bugs of things like disappearing cursors are basically being resolved as "Won't Fix", e.g. by Julia and Node:
Blinking of text cursor not suspended when moved on nightly Windows (Julia)
REPL on Windows doesn't display console cursor after moving (Node)
We have the same problem. Basically, if you start a cursor action while the cursor is invisible, it will stay invisible until you let up a key and wait a bit.
They point to resolution as "use any terminal other than CMD.EXE", and if the cursor problems bother you I say the same.
Many people like "ConEmu", and it has tricks that let you make it the default terminal in Windows...(so even places that CMD.EXE would usually be baked in regardless will launch using it):
Another option is Windows Terminal... Microsoft's current and much improved open source choice over cmd.
You can install it from the Windows Store: