Okay so update!
At long last I figured out the issue... Hallelujah!
I opened up the hardware and looked hard at the xin mo encoder. I had a diagram to reference where the connections need to be beforehand in case.
I then simply unplugged the 2nd player side's 4 pin (up, down, left, right) connector and turned it around and plugged it right in and BAM! All of the configurations read right and the controls were as they should be!
Hopefully this can help anyone who was at a loss like I was. It seems when all software issues fail... Check the physical connections to verify. 😂👍