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You could try the demo for this game and see if each controller controls a single character:
https://store.steampowered.com/app/204360/Castle_Crashers/
If not as expected (and assuming you're on Windows), have both controllers connected, press the Windows key, type joy.cpl and press Enter.
It should list both the controllers, and since they'll most likely be in Xinput mode I expect you'd see Controller (XBOX 360 For Windows). Select one and then click Properties and test out both controllers - the test screen should only react to one of them. Close it and check the Properties for the other device in the list and it should be a similar thing: test screen only reacting to the gamepad which didn't show input in the first test.
As an alternative to the Windows controller test from my previous post, you could have both controllers connected and go to gamepad-tester.com. Press some buttons and it should show both the controllers and how the inputs are being read. Hopefully it shows each controller operating independently.
It looks like there's a reset button on the back so try this:
unplug the receivers, turn off the controllers, press and hold their reset button for a few seconds.
Then connect one receiver and pair it with a controller. After pairing, unplug receiver and power off controller.
Then do pair process but for other controller & receiver.
Perhaps you'd paired them in such a process the first time round but if not have a go with that and see if the tester reads two devices.
Also have you got the drivers installed?