The problem is related to Android platform not having any implementation to support feature "Cursor lock", e.g. "https://docs.unity3d.com/ScriptReference/Cursor-lockState.html".
A workaround was implemented to get mouse deltas for this use-case by extending UnityPlayerActivity and overriding dispatchGenericMotionEvent and dispatchTouchEvent to capture mouse velocities.
MotionEvents are injected back into the Unity activity so that Input System continues to work normally.
In order to get this to work as expected without additional effort "cursor lock" support and capture based mouse delta tracking needs to be implemented for Android which have been filed in Product Board as a feature request: https://unity.productboard.com/insights/notes/view/7046-unprocessed/notes/28091572