First thought is some bluetooth problem, tried everything related but not working at all. After a few trial and inspection, it seems that the thumb button is stuck in between causing the mouse pointer not able to move smoothly.
Disabling the thumb side button in Logitech Options won’t help. It sounds like a hardware interference not a software driver setting.
This Inkandescent’s post and this operation guide will help fixing it. The pull-up workaround in the previous thread doesn’t work very well, so buying the T5 screw driver and loosing the thumb button board screws is the final solution.