I have finally solved my issues with Steam either using or emulating an Xbox controller with a very simple fix that no one has bothered to suggest to anyone on any forums (that I have found) so I am writing a quick tut to help others with similar problems, it seems to have worked for my PS3 and PS4 Controllers as well as both of my Xbox One controllers (BT and Non-BT) and I now have no issues so far from steam locking up when connecting a controller or mismatched button presses.

*REMEMBER ALWAYS make a BACKUP of files when changing or overwriting ANYTHING*

1)Make sure "Steam" is closed completely before continuing

2)Go to your "System32" folder (I.E. "C:Windows\System32")

3)Scroll all the way down to XInput9_1_0.dll, XInput1_3.dll, XInput1_4.dll, XInputUap.dll and xpad.dll.

4)Copy and Paste all these files into "Steam" main directory ("[Drive]:\Program Files (x86)\Steam")

5)Copy the same files from previous step into Steam's "bin" folder as well just to be sure, if it asks you to overwrite then just say yes to all. ("[Drive]:\Program Files (x86)\Steam\bin")

6)Start Steam up with controller turned off and once Steam is fully open and ready then you can proceed with turning on controller and then going to Steam - Settings - Controller - General controller settings to setup your controller

Notes:
*If your controller doesn't show up in the controller settings after a few minutes then turn off the controller and make sure to uncheck "Guide Button Focuses Steam" and have the correct box for configuration support checked (if the box is already checked then uncheck it and try generic gamepad support or leaving all configuration support boxes unchecked)

*If it doesn't recognize the controller after turning it back on and you tried all combinations then revert the steam folder back (make sure to delete the files from step 4 as well) and instead try copying the XInput dll's from Steam's bin folder to your System32 folder *REMEMBER TO BACKUP SYSTEM32 FILES BEFORE OVERWRITING* (I did not need to do this step, since windows' dll files were fine)

*Also never run Steam or any of it's services in "Admin mode". It is bound to cause more problems than fix, friend of mine was also having this issue and after trying my fix it didn't work until he turned off "Run in Admin mode"

Valve needs to provide some kind of security check for it's files, since even after I fixed it once Steam somehow ended up damaging the dll files again forcing me to copy the files again, so just keep a backup ready for if Steam damages the files after fixing them.

If anyone has any questions or needs help just message me or leave a comment and I will try my best to help since this is an issue I've had on and off for some time now.