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I followed the steps from the kali website documentations to install the guest additions but after I installed it and restarted the VM the mouse is no longer working on the login screen. Please help.

If it's a USB mouse then make sure you don't have any USB filters defined in the VM which might be grabbing ownership of it from the host. The host must not lose its mouse or keyboard.

If you need to discuss this further then post a VM log file. Read Minimum information needed for assistance.

I do not have any USB filters defined. The issue is also happening regardless of whether I use the touchpad on my laptop or if I attached a USB mouse.

Just to describe the symptom further, I can see the mouse pointer in the VM on Kali's login screen but when I move my mouse over to the VM it is not able to control the mouse in the VM.

Attached is the VM log file.

Disable 3D acceleration and see if that "fixes" it.

I did see somewhere else that someone had an issue with 3d acceleration. I already made sure that wasn't enabled on VBox settings for this VM.

I forgot to include the following information:

VBox: v4.3.6 r91406 (also mentioned on the logs)
Host: Windows 8.1 Pro (32GB total memory)
Guest: Kali 1.0.5 64 bit (8GB allocated memory)

AlM0 wrote:I did see somewhere else that someone had an issue with 3d acceleration.

Yes, a thread started by vrek. Funny, in his case my advice fixed it, or at least found a way around it.