Hi,
The fact that Pendrive forwarding works means that the USB forwarding module of the NoMachine is installed well, with all dependency components.
And as well as that, you can see forwarded devices in the Windows Device Manager, so this shows that it’s well connected to the remote machine.
One of the reasons why it’s not being detected by the software is maybe the device drivers are not installed properly on the machine where you forward your device.
Few more questions.
1. Can you check whether connecting your device physically to the server (not client) and forwarding the device from the server host to the VM running on the same host actually works?
2. Are your two machines located in one local network? What’s the ping time between them? In some hi-traffic devices timing of the network becomes very critical.
3. There are two optical mouses in your window, have you tried to forward the other one? Did it work?
4. Is there any chance to forward device to another Windows 10 PC (NOT VM), with installed software?
Another recommendation it’s better to forward one device at a time (especially hi-traffic device) and if it fails (with a red sign near the device) restart both machines.