Keyboard / Trackpad stop working when cursor goes into title bar / top of screen

I can’t believe in 2025 this is an issue but here we are. M1 iPad Pro 1tb running iPadOS 26.

I have a Magic Keyboard / Trackpad (external as in stand alone devices) combo plugged into my iPad Pro M1 through a USB hub. This problem also exists if they are attached via bluetooth not plugged in. This is official OEM apple hardware that worked fine on iPadOS 18.

When I navigate the cursor / pointer to the top of the screen, regardless if I am in fullscreen, stage manager, or the new multitasking mode, I lose all input. The mouse pointer fades away. I can’t type, move my mouse, or interact with anything on the screen. The only way to fix it is to restart my iPad completely. I know they are both connected because the trackpad still clicks and caps lock will turn on and off.

. Any ideas? I poked around through all the settings related