What your problem actually is is not clear. IF the gamepad seems to be working, are the buttons mapped? Does the game even accept this input?

I have this issue also. I can edit bindings, use the gamepad as a steaminput annd even run other nonVR games using it, but SteamVR doesn't detect the controller. It only sees the headset.
Until the most recent update it worked fine and the controller icon was appearing on steamVR across from the headset icon.
Did the latest update break it (Seemingly again since this is an older OP)?

I've already filed a support ticket, but any other help would be appreciated.

Update in case anyone else comes by with this: Disabling and re-enabling steaminput seems to have fixed it.
SteamVR is the touchiest mf some times

Originally posted by Democracy Officer Cain:

Update in case anyone else comes by with this: Disabling and re-enabling steaminput seems to have fixed it.
SteamVR is the touchiest mf some times

That didn't work for me. I even disabled the Windows XBox Game Bar. This was working just fine a couple of days ago, then the latest steamvr update went through, and now nada.

Stop touching things, Valve.

I had this problem starting today and noticed there was a SteamVR update. From the patch notes: "Disabled the gamepad driver by default to avoid a crash caused by certain accessory software. The driver can be turned back on in Settings > Startup / Shutdown > Manage Add-Ons."

I followed those steps and my Xbox controller is working like before. Pretty frustrating to do this unannounced.