@soilwizard I have done a bit more digging on the steam support pages.
Xbox one controllers are only supported over a wired connection currently:
https://help.steampowered.com/en/faqs/view/6424-467A-31D9-C6CB
If anyone has managed to get either a Bluetooth connection or 2.4 GH with a dongle to steam link on rpi working please let me know otherwise I'll assume it's currently not possible.