I've recently downloaded DayZ again on my xbox series s as I have a mouse* and keyboard now. They both work apart from when it comes to needing a cursor. I didnt have one in the menus so I tried getting into a game while on controller, although the keyboard did work in the menus too. I can look around and everything and shoot/punch etc, but when I open my inventory or pause menu there's just no cursor so I cant move things about in my inventory, meaning I have to pick my controller up to do so.
*I have the logitech g305 which is a wireless mouse.
Cursor does work on other games and apps on my xbox.