[FollowTheLion]

If you don't mind losing your settings in MobileSheetsPro, you could try resetting the settings to the default under Settings->Other Settings. Alternatively, you could just go to C:\Users\<your username>\AppData\Local\Packages\41730Zubersoft.MobileSheets_ys1c8ct2g6ypr\LocalState, rename default.xml to default_backup.xml, and then restart MobileSheets. That would let you test out the default settings without losing your current settings. I just want to know if the hovering works correctly with the default settings, in which case we can explore what settings are conflicting.

In the OS Pen & Windows Ink settings, did you enable anything like "Let me use my pen as a mouse in some desktop apps"? There aren't really any other settings I'm seeing that could be involved.

Mike

I can confirm that renaming default.xml makes things work again.
I've tried removing just the annotation enter node from my original default.xml but that doesn't solve the issue.
I'll try to whittle down which settings causes this, if you have any tips they're welcome obviously

Renaming default.xml solved the same issue for me as well.
It was weird, because it wasn't just that the stylus wouldn't trigger the annotations.  Using mouse clicks and keyboard wouldn't bring up annotations either.  I had also tried fiddling around with a couple of settings, including whether the stylus triggers annotations or not and also changing what type of tap or click triggers annotations, but these didn't help.
But renaming default.xml solved it.
In my case, I should point out that my computer upgraded from Windows 10 to Windows 11 since I had last used the software, so that may be related.
I'm glad I found this thread.
Thanks.