Thanks for testing!
The "free" mouse aiming mode (aim cursor can move freely around screen, not limited to fixed distance from player) should have been the default setting since 0.0.9. Is this what you mean by "fixed distance cross-hair"?
There is a laser sight weapon modifier that can be installed into any weapon but obviously you would need to get it first. Perhaps I should remove the modifier it and make the laser sight constantly available in all weapons and toggelable in settings.
Did you have the PS5 controller plugged in while playing with keyboard? There is known bug in Godot that makes keyboard movement work very badly with PS controller connected. I should make some sort of workaround to this because I don't think it's going to get fixed in the 3.x any more.