Mafia - Mouse not working on windows 10

Edit: for clarification, this relates to the original game, not the remade definitive edition released in 2020

I am trying to play the original Mafia game, and have an issue where the mouse does not move at all in-game. I am using the version of the game I have on steam which is listed as Mafia 2002.

• The behaviour is such that when I first open the game the mouse cursor shows in the top-left but will not move at all.

• If I open the steam overlay, the mouse works within the overlay.

• If I browse to the game directory and run MafiaGame.exe directly I cannot open the steam overlay (as it is not running) yet the problem is still present.

• The problem occurs whether I run in fullscreen or a window.

• I have, after observing the issue, independently installed the correct DirectX version and VC Redistributable, this also did not fix the issue.

• I have tried running in compatibility mode for both XP (SP3) and Windows 8

• The problem is not affected by whether I run as Administrator or not

I have found forum entries online which claim that you can create a wndmode.ini in the game directory, or download a d3d8.dll to place directly in the game directory, neither of these seem to work. I have fond memories of playing this game when it was new, and recently completed the third game in the series, which has left me wanting to go back and see whether the original holds up, but the mouse issue makes this somewhat unplayable, so any help whatsoever would be appreciated.