You're wanting a cut and drived answer and there's not one. That laptop
IS 16 years old and it's most likely hardware. However, you've only
barely tested. Each of these steps eliminates possibilities of the issue.
Hardware/drivers
You have tried the mouse on another device and it works, but have you tried another mouse on this computer.
Try another usb port. If it happens when plugged directly into all usb ports its's your laptop usb hardware.
If you use an usb extender, remove extender from the equasion & plug mouse directly into usb port. If that fixes it, it's your extender.
Use a powered extender. Laptops don't always carry enough power to usb ports to handle multiple devices.
See if it happends in Safe Boot.
https://www.elevenforum.com/t/boot-to-safe-mode-in-windows-11.538/
Inward to software and Windows.
Perform a clean boot to eliminate software conflict causing the issue. If it doesn't happen in a clean boot, you have some software conflicting with Windows. You have to use process of elimination to find which one.
Perform a Clean Boot in Windows 11 to Troubleshoot Software Conflicts Tutorial
Make sure you have no corrupt system files that is causing this problem. Open a command prompt as administrator and type
dism /online /cleanup-image /restorehealth
When complete restart. Then open command prompt as admin again and run
sfc /scannow
Pay attention to the scan results to see if SFC found anything it could not repair
After everything else is eliminated as a cause Repair install Windows 11 with an inplace upgrade
Repair Install Windows 11 with an In-place Upgrade