The full story of my Asus mouse may have nothing to do with OP's problem but it was this:

It worked in BIOS because it was initialised by the BIOS's own "USB Mouse Function" option which enabled USB devices to be used in MS-DOS. Linux also had no problems, with or without this option.

But once Windows had booted, it required the driver to initialise the mouse. This was no problem for me, but when I added other use accounts that were non-admin, the mouse would just sit there, unpowered, because drivers need admin rights to install (even if they were shipped with Windows).

I don't think I ever used that mouse on MorphOS to see what it did, and the Peg1 firmware didn't support mice or boot menu anyway.