I had this problem: the mouse had been laying on a very wet table due to roof leakage.
Also the track pad showed this issue. Initially was debugging Mac software (other user) and hardware (AHT). Clearly a defect mouse: when the mouse was disconnected, the track pad worked again, and when the mouse was replaced by another one, all worked fine again. Maybe the old mouse will work again when dry, and else...RIP. (beter this mouse then my Mac).
Thanks for this post, that indicated that this could also be a mouse problem!