No, everything seems to be OK on the wrapper side, re-init after quitting a mission is OK and there are no silent fails.
The menu screens are however only partially rendered (utilizing the content of previous frames). Drawing the mouse cursor follows the old "save the bitmap under the cursor + draw the cursor + restore the bitmap" technique.
It works well until entering a mission but after that, the game fails to save/restore the screen bitmap chunks properly and that's why the mouse trails.
Unfortunately it doesn't work natively for me even on Win7, so I can't figure it out if it fails natively on other than Win95/98.
But it's also mentioned here anyway: