Last draw-action? Do you mean that you see only the last of the two drawn lines in Image1Paint? This should not occur (unless you have some issue with the coordinates in MyXY[]). Or do you mean that when you click several times you see only the cross for the last click operation? This is because you do not store the previous click positions.
I see an annoying flicker in your application. Did not investigate too deeply but my first guess would be that drawing an image over an image could cause this because this has a lot of overhead. Rather than using a TImage for the cursor I would load the cursor in a bitmap and draw the bitmap directly in the Image.Canvas.
In the attachment you find a simple application which does the drawing operations of your project, as far as I understood. It avoids using a second image component for the cursor and is much faster (at least for me - Win 11). Every click position is stored in an array. The array points are draw in the image. When a click occurs on an already existing point the point is deleted - just an addon... The main image is embedded in a scrollbox which handles the scrollbars.