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I can't play the game with latest patch, the reason of that I described on previous page: new version ignores the LockSteMode directive and leaves it always enabled. I can say that for sure, coz when LSM enabled my mouse stop working (checked and tested on hotifx).
Could you contact support@larian.com with this problem? I can assure you that this is not normal behaviour. Make sure the graphicoptions.xml is readable and that your account has permission to edit it. You could also try deleting the file and starting the game. A fresh copy should be made then.
