I tried all the suggested both recommendations on GOG for windows 10 to fix my mouse.

I can run the game and play but the mouse is uncontrollable. Its not smooth it jitters and ends up on the corners of the screen moving the game camera everywhere. I need help with this or I am going to be leaving a poor review/refund. The game is unplayable in its condition and I cant give a recommendation for people to waste their money for army men 2.

The first game worked perfectly, I finished it and no problems I just don't know why this game has more issues.

I think it has to do with the mouse having a high DPI. I didn't have this issue back then but once I installed the creator update for Windows 10 it started doing the mouse jittering as well for Army Men 2 and Toys in Space.

So, you suggest disable\enable full screen optimistation and any else compatibility tweaks for am2.exe?

I dont have that problem on Win7. Cursor not moved to the edge of the screen just by short move. Some controlling issue exist in that old AM games, but - it just bad controls in game as it is. Gamepad is better for that games?
I play mostly on KB (with Numpad as i remember).
But AR WW plays much better in RTS style with KB+Mouse. Air tactics too, but some weird flying... sometimes it hard to make helicopter get up higher.

I just figured it out Army Men 2 and Toys in Space mouse jittering is because newer mouses have a higher Report rate you want to lower that to at least 250 to get the mouse smooth as possible I hope it helps because it helped me.

Furthermore, the software I used was Logitech Gaming Software to change the report rate of my mouse to 250.

Good call. I suspect the game was only designed for a 40 Hz poll rate (PS/2 polling rate in Windows 98).

I ended up utilising HIDUSBF in order to downclock my USB mouse to 62 Hz. This reduced the severity of my issues at 1000 Hz (cursor not tracking--resolved) and even 125 Hz (mouse tracking follows a rough zig-zag pattern when travelling on y-axis--severity reduced at 62 Hz).

In comparison to 62 Hz, I wonder how well the game controls on a Win98 install + PS/2 mouse (40 Hz)... the y-axis mouse tracking issue is peculiar.