I should have been more clear about the mouse behavior. The mouse pointer is frozen to a position on the screen after VR mode initiates. Alt-Ctl-Del works via keyboard, as soon as the options screen appears the mouse pointer is back. I have to end DCS via task manager.
Also, I am using a G2, and eagerly awaiting a PCL.
In the DCS VR tab I unchecked the Enable Virtual Reality box, and the Logitech mouse works again, and VR still works, while the Enable is off. I am launching DCS via "C:\Program Files\Eagle Dynamics\DCS World OpenBeta\bin-mt\DCS.exe" --force_enable_VR --force_OpenXR This means VR mode works, regardless of the VR tab option being unchecked.
I'm marking the suggestion as Solution, but I'd call it a "fantastic workaround" and I think something else is needed somewhere. I am going to try removing --force_enable_VR.