Someone suggested I SSH into the retropie and go to bluetoothctl and then scan now. I did so and neither of the controllers showed up. I rebooted and tried again, same result. Then I tried one last time to load emulation station and pair the controllers - and it worked right away.
The thing is that I had about 15 tabs open with any youtube tutorial and help thread that I could find and I was trying anything I could find. For me, it wasn't that I changed setting X and then it suddenly started working. I "think" the last setting I changed was when mitu suggested changing the pairing mode. I changed it back to default and had to try a few more times to connect before it finally did. There might have been some resetting in there. All in all, I spent hours trying to get it to pair. I hope you manage to get yours fixed in less time. I hope that helps a bit. Good luck!
I had issues with Pi4 wifi too. In my case I was noticing it when sending files over Samba from W10 or using FTP, and also scraping problems. I'd get constant disconnects and transfer speeds of around 200kb/s even when it would stay working.
I found mentions online of known issues where noise from the HDMI output can disrupt the wifi signal. Every instance I saw talked about said it was only over a certain resolution (1440 I think), but I decided to try disconnecting my 5" screen anyway, which runs 800x480, and as soon as I did that the speeds went up to around 3-5MB/s and the connection stays stable.
@gordonfreemanjr do you have any other controllers plugged in? Did you map your keyboard as a controller? It may be worth going into RetroPie-setup and resetting your mappings and then remapping just to see if that fixes the light issue.
Plug in a Keyboard
While in Emulation Station press F4 to open the Terminal
sudo nano /etc/modprobe.d/xpad.conf
Change xpad triggers_to_buttons=1 to xpad triggers_to_buttons=0
Accept the changes.
Return back to Emulation Station by typing
(In my case, I noticed that the X-box controller had started acting strangely while in Emulation Station.
The D-pad buttons swapped positions in Emulation Station as they were previously in PPSSPP.)
Remap the controller in Emulation Station.
Remap the controller in PPSSPP if necessary.
(In my case, this was not needed.)
I'm not sure why this issue is affecting some people and not others.
Apparently, the problem is caused by the Trigger buttons somehow.
@matchaman normally at a flee market you could find some in decent condition for like 5$ each and the kit is like 20$ so 25$ for a wireless OG controller would be the best but for me when i play my console games on my Pi i use the SN30 Pro and Pro+ but when i am on my Switch i use the official one they offer when you have the Nintendo online service (which i have not tested on my Pi yet).