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Note that it's not really a bluetooth dongle, ergo Windows 10 won't pick it up as if it is one. Definitely not as something you can use as a Bluetooth device yourself.
Have Steam running, then plug in the dongle for the first time and powe up the controller.
If I want to play in my TV I need to input de dongle because my TV doesn't recongnize as a bluetooth device neither.
Valve chose to use a proprietary wireless standard for the SC to reduce latency, and minimize compatability issues. Bluetooth has come a long way in the last 3 years, especially in regards to Bluetooth Low Energy, which was just a mess as far as compatibility was concerned with Bluetooth 4, which was the standard when the SC came out (and is still used in a lot of devices.)
It's still hard to find out what version(s) of Bluetooth any given phone or dongle supports, and I imagine Valve didn't want the technical support headache of customers confused when their Bluetooth doesn't support the Steam Controller because their Bluetooth is 4.0 Classic and not 4.0 Low Energy, and there's not a single bit of documentation on the web that actually says that directly.
And that's another reason why Valve wanted their own dongle and not Bluetooth.
You can connect multiple Steam Controllers to the same dongle.
There is a way to enable Bluetooth mode on the SC if you don't have your dongle or you're not using the SC on a PC with Steam installed. Just leave the dongle attached to your desktop PC with Steam installed and forget about it. The SC will always pair up with it fine.