It just feels lazy to me, like the developer couldn’t be bothered adjusting the UI for consoles so they copied the PC interface and bound the mouse cursor to a stick. Some games do both at the same time, having menues navigable both with buttons and a cursor, but usually that makes all menus unreliable and unprecise as hell.
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I think the primarily reason is that uniform UI is cost and time saving.
The virtual cursor is easily replaceable by a mouse and at th same time allows you to design a cursor driven UI for console.
It’s not the best for either, but usable for the timw invested.