This is also happening to me. I updated a few days ago to latest OS Monterey- and the problem has started On SAFARI 15.1.
It is not happening on Chrome or Opera browsers.
So basically - the Arrow Cursor is interfering graphically with the correct icons on SAFARI. I will explain the problem completely - It is an instant flickering (or perhaps "jittering") between the hand and ARROW cursor, or between the Type icon (the vertical stroke icon) and ARROW cursor. Depending in what you are hovering over, a hyperlink or text input box.
It's a reoccurrence of an old Mac OS problem, that re-occurs on many new Mac OS intermittently. The last time it happened to me I was on OS Snow Leopard more than ten or so years ago, its so deeply ingrained. I think there was some kind of Terminal-based solution. Ideally most people won't want to use Terminal to "rewire" the OS so soon after a pure upgrade.
What is the solution to this? And its root-cause please?