Some of the reasons for which you may end up seeing two cursors in a Parsec stream:

• The host has other recording software active which uses Windows Game Capture. For example, OBS may use WGC but can be altered in the desktop/window/game capture settings. Windows’ own integrated recorder will use WGC.
• The host has recently updated its graphics drivers and must restart the machine
• The host has HDR turned on
• The host has cursor trails enabled