Any CSS cursor (grab, grabbing, ns-resize, text, and so on) shows correctly on hover. As soon as the mouse button is pressed, it turns into the default arrow, and stays that way until the button is released. This happens in panels and in modal dialogs.
During the drag, element.style.cursor and getComputedStyle(element).cursor still report the element’s cursor, so the style is correct and only the cursor drawn on screen is wrong.
This bug is present in 27.11.0 and 28.0.1, but earlier versions do show the correct cursor during a drag.
I am running osx 26.7.1, and I submitted a bug report at adobe prerelease