Menu lasers and object highlights no longer appear for hand tracking on PICO standalone.
There seems to be a pointer in the lower-left corner of the HMD display, which can be "clicked" using the standard pinch gesture.
Looking back at the video, this is actually the mouse cursor, hidden out of the standard FoV.
Regular hand tracking gesture actions such as move, rotate, mic toggle, etc all work fine. It's only UI and object interactions that are broken.