I've checked with Wacom technical support. They've determined that it's a problem with Photoshop. Seeing as only Photoshop is affected and the fact that they did actual troubleshooting before passing the buck, I'm inclined to agree with them.
Photoshop may not have control over the cursor, but that would only be a problem if the cursor were NOT following the stylus. The cursor is in the right position. Just, the wrong menu is coming up.