Eli Zaretskii <eliz@gnu.org> writes:

> Specifically, I now think the adjustment should happen in this
> fragment from show_mouse_face, before we call display_and_set_cursor:

Thanks, but I already cooked something up.  The adjustment, in my case,
is done in draw_phys_cursor_glyph, conditional on
cursor_in_mouse_face_p.

Is there anything wrong with this approach?  Thanks.