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Velocio
Same issue with my MBA 2020 vs. the mouse (KB is wireless) for almost two months, swapped the noname USB-C hub for a "proper" Anker, still the same. What I discovered is, apart from rebooting, if I connect the hub's USB3 to another USB3 hub (posh Dell monitor) and connect the mouse there, it works. I think it's not about hardware as a reboot fixes the issue for me too.
Good to hear somebody dealing with this through the proper channels. I pinged my friend in Cupertino and he promised he'll take a look at the internal bug reports etc., but our communication is one-way most of the time as he can't let stuff slip.