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https://steamcommunity.com/groups/SteamClientBeta/discussions/1/1693795812293870152/
Right control stick is mouse control, Start is treated as 'Enter' key, etc. It's garbage.
To fix this:
Steam > Settings > Controller > General Controller Setup
Uncheck everything in this menu.
as I've said, the problem started this afternoon with the new steam update, in the morning it still worked fine...
Whatever the latest steam update did it seems to have totally screwed controller support.
see the post from Valve member