Turning off text cursor indicator

If you mean the Caps Lock indicator, then here....

Here is the Terminal command required to disable the Caps Lock indicator (best to copy & paste into the Terminal app):

sudo  defaults  write  /Library/Preferences/FeatureFlags/Domain/UIKit.plist  redesigned_text_cursor  -dict-add  Enabled  -bool  NO

For more details on reverting it, or what file its creating/changing, see my other post here:

How do disable orange circle with arrow -- HWTech - Apple Community