This does not hide the mouse cursor for Chrome-based screen capture, as Chrome does not yet support that. This feature is designed for hiding the mouse when using the Electron Capture app, to avoid mousing over the capture area by accident.
Works better in Windows than on macOS, due to OS-level limitations.
If you're looking to hide the cursor while screen-recording, consider using OBS to capture and OBS Virtualcam as the source into VDO.NInja. You can also check out: https://github.com/rdp/screen-capture-recorder-to-video-windows-free as an option to turn a screen into a virtual camera without needing OBS.