My game is very very lag and Broken cursor movement

Display capture is the worst capture method. Use game-capture or window-capture instead.
Also, FPS should be 60 or 30.

8GB of RAM is not enough to play and stream/record at 1080p 60fps (or 30fps) with a bitrate of 12000 kbps. In the old days we always refere to this issue as download more RAM.
 
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