This issue is still an issue, and a very annoying one if you tend to rely on keyboard shortcuts.
I'm running Illustrator 29.0.1 on MacOS Sequoia 15.1.1 on an M2 Max Studio.
Please fix this bug Adobe. It happens in Photoshop too.

Egor, the cursor changes only after I use whichever tool I've switched to (so, if I have the selection tool invoked, and then I hit "a" on my keyboard (to invoke the direct selection tool), the cursor remains as a black cursor (even though the direct selection tool is active). Once I click something, the cursor changes to reflect the direct selection tool. And then if I hit "t" (to select the type tool), the direct selection cursor remains active until I click or drag (to create text), after which the type cursor appears. The cursor being displayed is always one step behind.

Jesse, does it ever change at all at some point? Perhaps after you move the cursor?

When using keyboard shortcuts to switch between tools in adobe illustrator (e.g., pressing "t" to switch from the marquee tool to the type tool), the cursor does not update to reflect the new tool state. Instead, it remains as the previous tool's cursor (e.g., the marquee cursor), causing confusion and workflow disruption.

Steps to reproduce:
Open adobe illustrator on a Mac running Sequoia.

Select the marquee tool.

Press the "t" key to switch to the type tool using the keyboard shortcut.

Observe that the cursor does not change to indicate the type tool is active.

Expected result:
The cursor should update immediately to reflect the active tool selected via keyboard shortcuts.

Actual result:
The cursor remains as the previous tool's cursor, not indicating the change.

This is so annoying, changing the UI scale fixed it for me. I had to change it, then change it back to what I wanted. Then it started working again.

I have noticed the problem, but only since changing the default Mac cursor in System Settings › Accessibility › Display › Pointer

I would be interested to know if other people with this problem have modified their default Mac cursor or not.

@troyjack chasing the UI scaling seemed to help.
I found the small too small, but after setting it back to my preference the issue didn't return after a quick test.

I'm crossing my fingers this is a solution as it was behaving terribly yesterday. Thanks for the tip!

Just started happening to me on 28.0 after changing the UI scaling to medium in prefs.
Imac Ventura 13.6.1 AMD Radeon pro 5700

I have the same problem. Someone please fix this!!!!!!!

I'm having the same problem. I just updated to 27.9 and now this suddenly appeared. It's maddening!! PLEASE FIX!!!!!

Turn off "Use Precise Cursor" option in General Settings.

Same thing here, uninstall, reinstall, delete prefs, nothing works. Even bought a new Macbook pro. (my other one is 9years old so I tought this was the problem.) Its been over a year now that I have this cursor bug.

I started having this problem again when I upgraded to 27.7.0. It happened in the past with an earlier version of AI, but disappeared after a previous update. I'm running MacOS 12.6.5 on a M1 Max Macbook pro.

This bug slows down my productivity quite a bit while working. I couldn't believe it came back after being fixed a couple versions ago. Resetting prefs doesn't help at all.

I'm running the CadTools 13.2.3 plugin, a couple Astute Graphics plugins, and Axo Tools 23.2.7.0 plugin. All of these plugins worked fine with the previous version of AI, and I did not have the bugs that I do now.

I have previously reported this and still have the same issue months later. It slows down my workflow and causes mistakes that I continuously have to go back and fix. Since the proper tool icon won't show up simple things like going from Rotate to Selection constantly cause issues.

I am using Illustrator 27.6.1 on Mac and no update has made any difference. At this point, I have no faith that it will be fixed.

Same problem. I do lots of repetitive work using hotkeys and this has burned me many times.

I have this issue too! It's absolutely infuritating! Illustrator 27.6.1 on Mac.

I have this issue too, in 27.4.1. Sometimes mousing over the tools panel fixes it; usually it does not.

This issue causes a big waste of time in the workflow. One of the reasons it has so little "votes" is that it is hard to google the proper keywords to find the issue. (i.e. "zoom not working" is easy to figure out, but "Cursor won’t change when a tool is picked using keyboard shortcuts" is a harder one to guess.} This "vote" system is surrealistic. IT IS AN ISSUE I've been using Illustrator since 1988. I've just updates to 27.4.1 and the issue is still there. Very frustrating.

It's frustrating, to say the least. I find myself hitting the key for the desired tool several times before my next action.

Oh, yes, Philip, I do understand. If I had this problem, I’d be mad. An inconsistency like this is like a splinter in the eye, I can vividly imagine. Still, some problems I personally have, have only one vote — mine. Argh.
27.3.1 fixes this specific problem: https://illustrator.uservoice.com/forums/601447/suggestions/46336564
(notice it gained 32 votes in a week). It affected almost everybody, due to the nature of the bug, who received 27.3 (it gets rolled out in phases), and still, only some came here and reported it. The more votes — the more attention.
As for CADTools — well, third-party plugins CAN cause problems like this or other ones, worth checking! So please try to backup you Tools Panel Presets file, your workspace (an important step to revive them later, otherwise Ai won’t restore them properly) and try to remove the CADTools’ .aip files from the Plugins folder temporarily.
Even if it won’t help — it means more information and less routes. Thanks a lot!