Installed Monterey now mouse scrolling is disabled

What type of mouse? (Wired, wireless, or external trackpad)

Have you tried safe mode to troubleshoot?

How to use safe mode on your Mac - Apple Support (Takes longer to boot)

Note: Safe mode prevents your Mac from loading certain software as it starts up, including login items, system extensions not required by macOS, and fonts not installed by macOS. It also does a basic check of your startup disk, similar to using First Aid in Disk Utility. And it deletes some system caches, including font caches and the kernel cache, which are automatically created again as needed.

I Have the same problem

I updated to Monterey and mouse won't scroll after entering sleep mode.

Hard to think that such a basic function could be effected my a so called improvement.

Come on Apple where are you basic test!!!!!!

I have to turn off, and on the mouse, reconnect, than it will work again.

I have an bluetooth mouse from apple (came with the Imac 2019), this error occurred after installing Monterey.