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Steam > Settings > Controller > Desktop Layout [Edit] > gear icon right of 'Edit Layout' > Disable Steam Input > Confirm
Bit annoying that something that, frankly should be a front-and-center option, is buried in the settings like that. Moreover, should probably be off by default.
More surprising is that this issue hasn't come up enough to be covered to an extent that I could find via searching. After initial posting I had tested with normal gamepads and had the same issue, so its not like this was some error exclusive to the device I was using.
I had a similiar issue and Steam mapped buttons my controller did not have. Skipped those while testing, everything is working flawlessly again when Steam is on.