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Yup, that's what the game tells me.

It also insists that I must "Press 10 to save your changes". In order to temporarily see what keyboard keys I have to use to navigate the menu, I have to constantly wiggle the mouse. So Backspace saves my settings ... except, sometimes it just quits to the main menu without saving. And of course, there's no mouse cursor in the menu.

Same in the actual game ... whenever I wiggle the mouse it temporarily shows what keys I'm supposed to use. Otherwise, it shows some weird numbers or just nothing. Same stuff if I play with Xbox controllers.

Is this just my machine, or is this game broken?
Mh, the game recognizes my Xbox-controller and will show the corresponding button prompts, except when hitting the keyboard or moving the mouse, in which case it will switch to the associated keys.

Do you have a non-standard gamepad or keyboard driver installed?
Thanks for the advice! Turned out that I had something called "vJoy Device" running, which took over the input. Disabling it in device manager fixed it!