Tried my two wireless and I get the same symptoms across all of them (the 2 wireless are Logitech and a Genius, and the two wired ones are less known brands).
 
 
 
 

Something very similar can happen if the EQ plot resolution is set to Auto. It automatically scales the boost or cut to fit within the window when you change the amount. I always set the EQ to +/- 6 or 12 dB to avoid this. It's under Display > Module Options at the bottom of the Inspector.

...maybe  you could use ACT to control
rotaries with the mouse wheel?
 
Mel

Changed it from 18 to 12 to test as it wasn't on Auto, but no change
 
This is more than just EQ, it's pretty much everything
Console Fader - Faulty
Console Pan - Faulty
Console Send - Faulty
Console Gain - Faulty
ProChannel Console emulator - Drive - Good (Note this one does not show a white square boundary when selecting)
ProChannel Console emulator - Trim - Good (Note this one does not show a white square boundary when selecting)
ProChannel Tube Input - Faulty
ProChannel Tube Drive - Faulty
ProChannel Tube Output - Faulty
ProChannel EQ HP or LP - Faulty
ProChannel EQ HP or LP slope - Faulty
ProChannel EQ Band Frequency - Faulty
ProChannel EQ Band Q - Faulty
ProChannel EQ Band level - Faulty
ProChannel EQ HP or LP - Faulty
Flyout ProChannel EQ HP or LP slope - Faulty  (Note grabbing the node points and moving works fine)
Flyout ProChannel EQ Band Frequency - Faulty (Note grabbing the node points and moving works fine)
Flyout ProChannel EQ Band Q - Faulty
Flyout ProChannel EQ Band level - Faulty
Prochannel Compressor (Input, Attack, Release and Output)
Prochannel Breverb Time/Size/Diffusion/Shape/Spread/High - Good (Note this one does not show a white square boundary when selecting)
Prochannel Breverb Dry/Wet faders - Good (Note this one does not show a white square boundary when selecting)
Prochannel Bark of the dog Mix/Frequency/Amplitude - Good (Note this one does not show a white square boundary when selecting)
ProChannel BOZ +10dB Comp All Controls Good - (Note this one does not show a white square boundary when selecting)
ProChannel BOZ +10dB EQ All Controls Good - (Note this one does not show a white square boundary when selecting)
ProChannel Tape Emulator All Controls Good - (Note this one does not show a white square boundary when selecting)
Track View Pan/Gain/Reverb/Send Pan - Faulty
 
 
Ok that's enough the pattern seems the same. The controls that DO NOT have a four white corners when selecting, WORK. The controls the DO have the four white corners when selecting, are Temperamental, the main thing I observe, is that with concentrated effort that sometime I can move in a positive direction (Rotation), but negative movements cause a jump. The Non Prochannel controls that are temperamental with the mouse, work well with the scroll wheel, but the ProChannel options don't allow the scroll wheel.
 
 
 
 

http://forum.cakewalk.com/Mouse-control-problems-m1143732.aspx
http://forum.cakewalk.com...-control-m1764711.aspx
http://forum.cakewalk.com/Issues-with-mouse-pointer-and-clicking-in-Sonar-X3-Producer-m2951090.aspx
 
These look to be reporting the same issue, but they widely spread and the Op's fade out before finding a solution. 
 
I ran through a stack of VSTs and they are all fine too, they also do not highlight the control with 4 white corners.
 
What do these white corner symbolise, what makes them different?
 
 

Thanks Kamikaze.
It seems others have the same problem, and I hope it can be resolved. 

Can you confirm FM, do you get jumpy control movements on the control movements on the control only surrounded by for white corners when selected. Be it Track View/Inspector, Console or ProChannel view. VST and Non Cakewalk Pro Channel modules do not create the four white corners when selected and behave fine. Everything except Pro Channel can use the scroll wheel and the scroll wheel is fine (where it is an option).
 
In Pro Channel do the following work with the mouse (Does not highlights with 4 white corners);
 
Console Emulator
BreVerb
Bark of the Dog
Boz +10DB Compressor (you may not have this)
Boz +10DB EQ (you may not have this)
Rematrix Solo
Saturation Knob
Tape Emulator
---------------
and the following do not work (Highlights with 4 white corners);
Tube
Pro EQ
Compressor
FX Chains
 
 
ALSO, do you use a laptop or a Desktop?
 
 
 
 

I wish I could check the others but I only have two Pro-channel modules. (Sonar 3X Studio).
My system is a desktop (4 Gig Ram, Windows 8.1, Duel Core Intel processor) with a Logitech wireless mouse and keyboard. (Logitech K220)
 

FM
This has been solved.
Normally you left click on the knob and hold the mouse click to adjust, but this gave me the knob stutter behavior.
How I solved this. (Different mouse click method)
1. Left click on knob as usual.
2. To adjust knob (don't hold in left click) but right click, hold and drag. 

Forgot you wrote this too, despite testing in and seeing that it works for me too. BUT it only works for the ProEQ, in both the Pro Channel and the Flyout, not for anything else that is marked by 4 white corners (in track view/Inspector, Console or ProChannel)
 
This is what I mean by four white corners

 
 
 
 
 

What's the other Pro Channel module you have?