I have also experienced the cursor still being the move cursor. i can usually get it to respond to point selections though. But it requires me to find a sweet spot.

Having the same problem after I win the particular battle I get the Victory window and click past that to be told my sovereign has levelled, unfortunately the cursor, in this case a cross with the squiggly line normally associated with being out movement points in a tactical battle, can't add any points and ok is greyed out - I assume because I haven't allocated any points.

Steps to reproduce:

1. Start a game (not tried campaign yet so I just started a random map)

2. Have your near levelling sovereign join a battle

- not sure if xp gained for your sovereign is tied to what they do in the battle, but

3. Ensure your sovereign levels with that battle

4. Click past the battle summary page

5. Attempt to allocate points for your sovereign or exit the level up window in anyway

It's easily avoided by auto-resolving the battle in question, but as I don't know how far my sovereign is from levelling and you end up playing a battle only to have to load a save and auto-resolve it anyway.

The top left corner of the icon will work as a pointer, a little practice and you'll get it down (still a bug, but it's a decent work around), the other option is to go into the video options and turn on hardware cursor (you always get the windows pointer icon then). 

I hope they fix this bug, but those are the work-arounds I use right now.

Thanks guys! I put the solution to use. >: D

Thanks for this report.  This is an issue we're working on.  In the mean time the suggestions spacecadet87 had are right on.