Made sure that Windows 10 is updated (currently in 20H2), the Xbox Accessories is updated (300.2011.9001.0) and the controller itself is updated (5.5.2614.0).
You can update the firmware on the controller by either pairing with annold xbox or new one or using thr Accessories app on Windows.
Youll need s usb-c cable to update via Xbox accessories on Windows.
make sure to unpair the controller and repair after all the update’s.
the device now should have a slightly different name and end with 4 digit number so Xbox Wireless Controller ****
This does help recognize the new xbox controller in windows via bluetooth, however it still does not function correctly when playing games. In Steam you see 2 different controllers detected, a generic 16 axis one and a xbox one
controller. Even when hiding the generic 16 axis controller, Scrolling with analog seems very sensitive or double inputs, also in Steam big picture mode it doesn't even work to launch a game, the buttons don't seem to be mapped correctly even with the xbox
controller setting checked. I press "A" and I get some search library popup etc. When trying to play Assassins Creed Valhalla with Ubisoft connect and controller is connected via bluetooth, it constantly shows the controller being disconnected and not even
usable.
All these issues are remedied when you plug in the new xbox series x contrller via USB cable... So it's something to do with the bluetooth driver/connection.
Yes I did use the XBOX accessories app and updated the firmware on the new xbox controller and installed the optional windows 20H2 update.
Update: I saw there was an optional intel bluetooth update in windows update. This update fixed the disconnects when playing Assassins Creed Valhalla. Still having issues with Steam
Update 2:
Steam Big Picture mode, the controller does not seem to work properly still, however I just tried playing Star Wars Squadrons in steam, I navigated with my mouse to launch the game, in game the controller config shows loaded and
controller seems to function properly. I did get a windows message that the battery needs to be recharged and is a 0% which is incorrect. This controller I have is brand new with brand new batteries.
Update 3:
Steam Support responded back to me in regards to Controller Settings menu issues as well as Big Picture Mode issues. Both have been resolved with the latest beta version of Steam. Easy to participate and download the beta version
of steam in the Account Menu in Settings. Beta Participation