Fairly large update from the Chrome OS the other day and my touchpad no longer detects a cursor. I can still see "Touchpad" as an option in the Chrome settings and the touchscreen still functions, but the external keyboard with a touchpad does not have a functioning touchpad. I can plug in an external mouse to USB and cursor will appear, but no luck with the touchpad.
if the issue persist, Try this: Type chrome://flags/#ash-debug-shortcuts in the address bar of the web browser and press Enter. Enable/Disable the option Debugging keyboard shortcuts, then restart your Chromebook. Press the Search + Shift + P keys at the same time to toggle the touchpad On or Off.
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