RetroPie 4.0.3 Xpad Xbox 360 Wireless Blinking LEDs and Sticky controls

[C-Cyde]

Pi Model: 3
RetroPie Version Used: 4.0.3
Built From: Berryboot alternate OS installed
xpad: 0.4 removed and then reinstalled from retropie setup
USB Devices connected: Official Microsoft Xbox 360 Wireless controller USB, Logitec K520 KB Mouse dongle
Controller used: Xbox 360 Wireless
Error messages received: All 4 controllers Blink LEDs
Guide used: https://github.com/RetroPie/RetroPie-Setup/wiki/Setting-up-the-XBox360-controller#3

How to replicate the problem:
I followed the guide and even removed and reinstalled the driver xpad driver and RetroPie but xpad still does not have the LEDs light quadrants for the player correctly. I have four controllers and all of them have all four quadrants flashing when connected. LEDs worked for Xboxdrv but in some games controls did not and the text in the Emulation Station stopped loading so all the text was little grey boxes.

Xpad works ok in games and in the menus but the lights are getting really annoying and the inputs stick. The wiki article warns that xboxdrv has issues so I'm avoiding what pretty much every guide recommends trying to stick with xpad. I had installed in a previous image but had to remove and reinstall when the text stopped loading I had to clear everything I had setup to try a fresh install again.

I'm working with a fresh install so im good with anything you guys can suggest but all of the guides point to xboxdrv that I have been able to find. I'm ok with going deep into the config if needed.

Sticky controls are getting old but may be related and any help getting these LEDs to behave would be greatly appreciated. Been at this for the past few days.