Application Switcher Disables Mouse Click When Using TeamViewer

Continuing the discussion from How Can I Kill Keyboard Maestro Through the Terminal?:

@peternlewis I have an update on the previous topic. Continuing here because the title is misleading.

The issue is that the mouse cannot click anything anymore as soon as I activate the Keyboard Maestro application switcher that looks like this.

I always thought it was related to one of the thousand tools on my Mac. I kept deactivating them and the problem kept popping up.

But last week I've seen the same thing on a client's Mac that had none of my tools installed, except Keyboard Maestro and TeamViewer.
As soon as I managed to kill TeamViewer, the mouse unfroze.

The weird thing is also that the mouse works properly through TeamViewer, but not on the local Mac.
I suspect there is some incompatibility there.
Mind that the issue does not always arise.
And it is still possible that there is some other setting that triggers this.

I am posting it here in case it is a big deal for someone else.

All remote desktop and virtual machine emulators are weird black boxes of event processing and translation.

Unfortunately, Keyboard Maestro simply processes events and simulate events and how remote desktop and virtual machine emulators handle simulated events can vary dramatically.

In this case, I have no idea why the Application Switcher would have any affect on mouse clicks. Clicks outside the Application Switcher have no affect on Keyboard Maestro, and are not affected by Keyboard Maestro - they may behave oddly depending on the modifier keys you have down (typically the command key) while the Application Switcher is shown.

The Application Switcher disappears when the modifiers related to its trigger (excluding the shift key) change.

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