I have a Space Explorer USB I've had for a few years, and with SW2016 it randomly stops recognizing that the control cap is being moved. It works fine in other programs, it's only SW that it stops working in. Even if I stop and restart the add-in, it doesn't make a difference. It requires restarting the 3DxWare application to get it to work again.
My driver for the mouse appears to be up to date (version 10.2.9), and it only seems to happen in SW2016.