For whatever reason, GNOME does not listen to `export XCURSOR_PATH=$HOME/.local/share/icons:/usr/share/icons` in .bashrc.
I needed to make a symlink of ~/.icons to ~/.local/share/icons and then my cursor theme showed up in XWayland apps. On GNOME my cursor was already detected properly in any native Wayland application and the desktop. But on X11 session I had a weird behavior where the desktop was default Adwaita and opened apps were the custom cursor.

