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It is where all of your steam VR settings are stored and it doesn't get deleted when you uninstall steam VR if it is like most other steam settings. You'll probably have to reinstall steamvr and then set everything up again but if it is a problem with a setting that might fix it. All I can think of though sorry.
Steam Support had me recreate the issue on a different computer. I just set up my old PC (the 7700k, 1080ti), hooked up the VR, and have a fresh install of Windows 10, Steam, and Steam VR.
Still, only 1 controller will connect at the same time. I think this narrows it down to either the Index or the controllers as being the issue.
I am even more confused now because the Index worked prior to using the new PC. After attempting to boot up the Index through the new PC, this controller connect issue is now present with both the old and new PC.
I am curious if you do end up trying a factory reset if it actually works.
I'm thinking about factory resetting the headset as well but I've no idea if it'll work or just ♥♥♥♥ ♥♥♥♥ up more...
♥♥♥♥♥♥♥♥♥, this worked for me!!!! TYSM!!!!!! <33333
I followed those instructions, it asked me to install/repair the tracking upon startup and then I paired the controller that was stuck on blue and it worked! ^-^
The other thing I have seen cause a blinking red light on the headset is the cable (or the USB port the cable is plugged in to) being damaged.
Apparently the blinking red lights are used as a code for multiple types of failure (on the headsets, controllers and base stations too) and you tell by the blinking rates, but I don't know the specific blinking rates.
Have to say, the cables being damaged could also explain the entire issue, maybe as you were moving them around from the old PC to the new PC you bent a fragile part of the cable past its breaking point. But there's no convenient way to test that I am aware of. Breaks to the tether can cause a lot of oddities however.