And the plot thickens. I noticed one minor looking difference between installing the MacOS on a separate volume, and wiping out my MacBook completely, and re-installing it from recovery. When re-installed in recovery, my mouse appears with a black icon (which I would expect, since I have the space gray one), however, it appears with a white icon if installed on a separate volume.
View attachment 1734279
But I'm sure the difference is not the result of what volume the OS was installed on, but that I used slightly different methods in the two cases.
The complete re-installation I did from the recovery app (Command + R while booting)--I just pressed the "Reinstall macOS Big Sur" button.
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While I used an external USB stick I downloaded Big Sur 11.2.1 to, when installing on a separate volume.
https://support.apple.com/en-us/HT201372
And the other difference is that when installed from the USB stick, the mouse does not disconnect!
So, I again wiped out all the volumes, and reinstalled Big Sur from scratch, but from the USB stick this time. And the mouse is not disconnecting! (so far)
How is this possible? I downloaded the needed files to make the USB stick the day before yesterday. Wouldn't it be the same files used for installation from the recovery app? At least it looked to me that everything was downloaded through the internet.