X-Input mode sends inputs from both ports out as a single controller. D-Input does not.
WORKAROUND! Set the controller to D-Input. Open Steam Big Picture. Set the controller up. You'll fail the first time because each D-Pad direction registers two buttons. That's fine, just get to the end and save. Once you're done, go back INTO the controller configuration, and Steam will allow you to set one button at a time. That will fix the d-pad problem.
Some games (Under Night: In-Birth) will not accept the Steam input. There's an option under "Controller Configuration" in the Big Picture menu (Shift+Tab) that will let you set the "Steam Controller" to "Force". Set that and restart the game. I've now got 2 players working without a hitch.
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