Win11 VM and Steam both recognise the controller but doesn't communicate properly with it. Controller buttons do nothing and the XBox button just blinks. See Technical Report 383563105 I have way too many other VMs this would impact, so please don't bother to ask me to roll back to 17.01 - that's not a viable nor an ethical solution, imo. Instead, fix your problem.
Can confirm that Wired XBox 360 controller now works in 17.1.1. Also worthwhile to note that my RTL-SDR receiver and external 5.1 audio system, both connected by USB, now works properly as well.