DICE somehow totally broke mouse aiming in Update #3.
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If you downloaded Update #3 for Battlefield 2042, and found yourself unable to aim left or right on the PC, you aren't alone. DICE somehow broke mouse aiming as part of the rollout for their latest update.

DICE has publicly acknowledged their blunder and have listed a potential fix under their Live Service Alerts.

Their suggestion is to restore all default settings by going to My Documents > Battlefield 2042 > Settings and removing all "PROFSAVE" files from the folder (ie: delete them). Do this without the game running. Keep in mind that this will reset all in-game settings.

Thankfully, there are better solutions that the community found. These community fixes will not reset all of your settings, only several that are attributed to movement while on foot.

The first community discovered fix was posted by Reddit user rerri. Like the above, be sure to do this without the game running.

Open "PROFSAVE_profile" (Documents\Battlefield 2042\settings folder) with notepad.

find GstKeyBinding.infantry.ConceptYaw.

There's roughly 20 lines with this string. Delete all of them and save file. Should be fixed now.
Another fix seems to work by just resetting some settings in the in-game settings menu. Reddit user c-fish123 suggests trying the following:

Go to Mouse & Keyboard>Edit key binding>Movement>Restore to Default>Delete keybinds for mouse look up and mouse look down>exit the menu screen entirely>go back in and rebind mouse look up and down.
There are several options that you can try here if you find that you are unable to look left or right.

To note, this isn't the only thing that DICE broke or failed to fix in Update #3. For instance, they still did not fix the reload issue with the M44 revolver, nor did they fix an issue with resupplying underslung grenade launchers.