I am observing this peculiar behavior of my usb mouse with Raspberry Pi 3. I am able to move the cursor but right and left click does not work. Even cursor hovering over icon does not highlight particular item. if i unplugged mouse and re-insert, it works for sometime and then same behavior again.
I am using 5V 2.5A power adaptor, so I don't think its a power issue.
Could you help resolving this issue. I am using latest raspbain Jessie OS dated 10 April 2017.