Pencil not aligning with cursor on sidecar

This fixed it for me, simply turn off "Show Touch Bar" in sidecar preferences in the computer....

https://discussions.apple.com/thread/252494117

I was having *exactly*the same issue as you describe. I don't know exactly what I was doing wrong, but when I found this instruction page from Apple and followed it, it worked perfectly.

https://support.apple.com/en-au/HT210380

Compared to the problem I was having, I now find, after following the above :-

• The pencil is perfectly aligned
• The screen is larger and more legible and doesn't have black letterbox bars top and bottom
• Responsiveness is also much better

Hope it works for you too. After all, I must have been doing the same thing wrong as you, initially.

cheers

I suggest you contact Apple support via the contact support link located at the upper right hand corner of every Webpage of these Apple support communities OR by installing and using the Apple Support app found in the iOS App Store.

Tap the iOS App Store link below.

https://apps.apple.com/us/app/apple-support/id1130498044

For the link, pick both Device Performance and Connectivity categories.

Best of Luck to You!

How did you reset the graphic card?