While waiting I installed Recall box to try if it works. It's same there.

However... I found old Saitek Pad (PS2700) and it works like a charm. I decided to try xBox Controller via USB and it works like a charm.

Trying to connect via Bluetooth does not work at all. Will try to ssh and play with BT then, maybe console will tell me something.
Since I can't pair my headphones also, I think it might not be pad problem, but bluetooth.

About SteamController. There is problem with mapping of d-pad. It recognizes only swipe in one or 2 directions. Like Analog Left and Analog Up. So its more like Analogue for emulator than D-Pad.
But I think i can pass on stemController if XBox and Saitek works. I'm a fan of D-Pad. Touchpad as D-Pad is not good on SteamController.

@mohrad I think you 'll need to do it cause the vanilla driver is wrongly recognizing any touches in the first place. Also the install does not work for me, maybe because i created the steambuild folder in the wrong directory

@wmarler first of all thanks to your work.
I encountered an issue when using the command make. So when I try to use the commands
make -C /lib/modules/uname -r/build/ M=$(pwd)
$ sudo make -C /lib/modules/uname -r/build/ M=$(pwd) modules_install
its something like :
make : Entering directory ........
make : *** No rule to make target ´ /build/´ . Stop
make : Leaving directory ´ /lib/modules .......

I am quite new to linux on that level so I dont know what to do. Has somebody an idea.

@Parabolaralus Looks like it can be kernel related.
I made it work yesterday on older RetroPie based on Debian Etcher. However, the system was a few years old and I decided to make a fresh install. And it was a mistake because nothing was wrong with an old install, I just wanted to clean up the system garbage after several years of usage...

After re-install I have top heat instead of dpad left e.t.c.

I also tried Batocera, Reacalbox everywhere it looks the same.

@mitu my apologies, im not sure of the rules here, one topic was different(relating to multiple controllers). Im just frustrated as there is clearly meant to be an option for this and i cannot seem to find any answers anywhere.