MacMini keyboard/mouse icons flashing on screen problem solved
I was getting these alternating keyboard and mouse images when I was trying to set up my brand new M1 chip Mac Mini.
try restarting the computer by doing a hard shut down and turning it back on. At least in my case, this allowed my seven-year-old magic mouse and Wired keyboard to be recognized, and the set up process to go forward.
Mac mini, macOS 10.13