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But yes, you have to hardwire the controller, and (Most important step) Launch the game thru Steam VR. Not thru steam and then checking the VR option.
In steam VR make sure it sees your 2 VR controllers and the Xbox controller. Then launch it thru SteamVR thru your goggles. It should then work in the menu and you're good to go.
A word of warning. Keep your VR controllers handy. They are the only way to advance talking to NPC's ( the LT it wants is your LT VR controller) and to mine/build you'll need the VR stuff. But walking, flying fighting can be done on the controller.