Hi kmansong2,
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I understand that after an update was installed your mouse quit working. You did a restore back to a couple of days before the update and it worked well again. It again did the auto update and the issue returned.
You should not need to wipe your computer and if you did, a backup would save all your files, so your work would not be lost.
EVen after recovering your computer, ff it is the update that is causing the issue, when the update goes in again it will most likely return. I would not suggest doing that just yet.
You can configure your Windows updates to prompt you before installing updates, thus it would not automatically install it, but prompt you and you can choose if you want the update or not. Here is a link to a Windows document to assist you with that. Change how Windows installs or notifies you about updates.
Have you tried running The HP Support Assistant to help resolve issues and find HP updates?
When this happens, if you connect another USB device in the port, does it function? If so it is not the USB port.
Troubleshooting Mouse Problems (Windows 8)
If you would like additional assistance would you please provide the exact model of HP notebook you have and the Operating System you are running. How Do I Find My Model Number or Product Number?
What model on wireless mouse are you using?