I wouldn't recommend the Pico if you are using it out of spec as I am (65W CPU + 120W GPU + system load) - it's only rated for 160W with a peak of 200W. I'm pretty sure during system spikes, some of the USB ports get their power cut, and that causes the intermittent mouse tracking / keyboard inputs. It will ultimately impact your gaming experience if you push the system to it's limit. If you really wish to pursue the pico, i would perhaps suggest using a 35W "T" variant of the CPU.
The issue is not exactly the pico but rather the power brick you have driving it. The pico can be viewed as simply a power distribution block with the main power coming from the power brick. In my testing (65 watt cpu (undervolted and IGPU disable for 45 watt operation) and the 120 watt GPU) my system peaks at 215 watts under artificial stress testing and around 180 watts while gaming. So that 192 watt power brick might not be up to par with powering the system for extended periods of time near its max power output. Pair the Pico with a stronger 12 volt power adapter (like the xbox one adapter I am using) and you should not see any more issues (I have not come across any issues with my rig).
For any interested, here is the link to my build log where I detail my power numbers and some of the modifications I did to the pico.
https://smallformfactor.net/forum/threads/nfc-systems-s4-mini-72-build.740/