Keyboard and mouse freezing / locking intermittantly

Your system information

• Steam client version (build number or date): Steam Runtime Version: steam-runtime_0.20210317.0
• Distribution (e.g. Ubuntu): Ubuntu 20.04.2 LTS (64 bit)
• Opted into Steam client beta?: [Yes]
• Have you checked for system updates?: [Yes]
• Video Card:
  Driver: NVIDIA Corporation GeForce GTX 1650/PCIe/SSE2
  Driver Version: 4.6.0 NVIDIA 460.73.01
  OpenGL Version: 4.6

Please describe your issue in as much detail as possible:

Roughly every 5 or 10 seconds the mouse cursor freezes in place and keyboard becomes non-responsive. Can't escape, can't mouse click or hold mouse click. Comes right about 5 or 10 seconds later then repeats which makes playing games unplayable.

E.g in car mechanic I might hold the left mouse button down to screw / unscrew a part of the car. The cursor freezes in place, I can move the mouse around and the screen is moving but I can't engage with the part using the mouse or if I am engaged then I can't disengage from the part using the escape key on keyboard. Left / right clicking the mouse buttons will not screw / unscrew the part.

Problem started immediately after steam updates

Steps for reproducing this issue:

1. Happens in Car Mechanic Simulator 2018
2. Happens in PC Builder Simulator

Start by reproducing the freezes in Car Mechanic Simulator 2018 and PC Builder Simulator on Ubuntu 20.04.2 with the listed Steam Runtime and NVIDIA driver, then compare behavior after the Steam update. Done means keyboard and mouse input no longer locks every few seconds during gameplay.