I've been also facing this issue when I was exiting Neo vim. I tried many steps but It did not work. Alas, I found the solution is that you need to set the guicursor to "disable". The one thing is that, After we set that to "disable", In the Neo Vim we cannot see the beam-cursor. It will always be the default cursor you use. I use I-Beam cursor, so in Neo Vim, There will always be I-Beam cursor and not block-cursor. If you want it that way, Then use the following command in your init.vim file. It works for me.
The code -
set guicursor="disable"
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