This is taken by a camera (screenshot taken with Ctrl-F5 didn't include the problem).

It's inside of a new tab page. As shown, there is a square bitmap that's not part of the new tab page.

Deleted: IMG_20160728_130257.jpg 167 KB

	IMG_20160728_130257.jpg 167 KB View Download

I think this is  issue 631268 ?

Chrome Version       : 53.0.2785.29
OS Version: 8530.30.0

Also on a 2015 Chromebook Pixel (dev channel, enterprise managed).

Seeing the same issues, though I would describe the behavior as 'frequent' instead.  Also, the reporter notes having used the device for tab casting before seeing this behavior - I can't say that I've used this device for tab casting but am seeing the exact same issue with bitmap artifacts replacing the cursor.  It also appears that some items fail to highlight correctly when you mouse over them with the cursor in this state, making it even more challenging to navigate than if, for example, the upper left corner of the rectangular artifact represented the top vertex of where the mouse pointer would have been, though this does not appear to be the case.

The artifact image appears to be constructed only from items already on the screen.  I can replicate the issue using both the internal display and an external display.

The issue appears to happen more frequently when transitioning over page elements such as from a text box to a scroll bar.  It's not totally reliable, but it does appear to be significantly more common when making that transition.

This issue only began to appear after updating to CrOS 53.0.2785.29/8530.30.0.