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@kleesdad Check out this thread and should work the same with the wired Xbox 360 controller as well: https://retropie.org.uk/forum/topic/3580/wireless-xbox-360-controller-issues-in-kodi-16-1-on-retropie-4-0-1
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The rebuild of the kernel did the trick! My thanks go out to @obsidianspider for the original post on how to fix it! Marking as solved!