The extra space in lists comes from padding afaik (why lists have extra space beats me). It can be that the cursor will become normal again if you remove the padding. I use the following code:
/* bullet lists same line height as body copy */
.cc-pretty-preview .markdown-preview-section ul li, .cc-pretty-preview .markdown-preview-section ol li {
margin-top: 0px;
margin-bottom: 0px;
}
.cc-pretty-editor .cm-s-obsidian pre.HyperMD-list-line {
padding-top: 0;
padding-bottom: 0px;
}