Operating system: Windows 7 Professional SP1
Graphics card: Nvidia GTX 960 4GB
Broken: 2.8/ blender-2.80-11f2c65128dc
Short description of error
If you disable object selection for the image from the outliner, you can still click and manipulate the image normally, aka still selectable.
mouse cursor also gets stuck as that other icon until I pop up the add menu or the cursor re-position menu or hover it over other menu/windows.
Exact steps for others to reproduce the error
-Launch blender 2.8 beta, ADD > Image > Background Image.
-Toggle selection cursor to off from outliner.
-Hover mouse over the background image's corners or center and you'll see it can still be manipulated.
Note: all the above mentioned steps are done in this blend file, just hover your mouse over the corners of the image border.