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For those with a similar issue: be sure to check your terminal's cursor color settings, which take precedence over nvim settings.
I had this issue until I enabled "smart box cursor color" from within my terminal settings which basically inverts my cursor color, making it visible in dark and light mode.
Don't know if LazyVim is the problem here. The cursor is close to invisible:

Me config (LazyVim does some magic setup stuff):
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