there was a gamepack update for OSRS today, which, on update days, OSBot sometimes breaks for a short period of time. The devs are working on fixing it. There is no ETA.
Hardware mouse uses the physical mouse on your machine so yes, it will only work when client is in focus and you arent doing anything else on your computer.
you need to launch using the legacy client via jagex launcher, https://oldschool.runescape.com/download?force_test=control download this, relaunch jagex launcher, launch legacy client.
Need to use the legacy client for jagex launcher https://oldschool.runescape.com/download?force_test=control
Note: Jagex launcher accounts can not be used with the OSBot breaking system.