Controller Forced to player 2, when attempting to use it, otherwise it does not work except for the left stick in the menus

So last night on Jan 18, the marketplace updated with the Chinese New Year update/theme. Upon leaving my friend's game, a 'pop-up' appeared, saying to 'celebrate the chinese new year!' saying to also head into the marketplace to check it out...but when I tried to close the pop-up with my controller, nothing happened. So I restarted my game, then grabbed my Keyboard and mouse, then connected those to the xbox. The menu works fine with KB/M, and so does playing the game, but when I try to press any controller buttons in a world, it says to press the 'three lines' (pause) button, to join as player 2

So the issue is, my controller's left stick can navigate the menus, and the Y button let's me change profile. That's it.

If I try it in-game, the controller is paired to 'player 2'...for some reason... Then when I do pair it, the controller works just fine as player 2!!

Anyone else having this issue??? Please help as I cannot play KB/M...I have a KB to type faster. Not play games!

Please comment at your earliest convenience as my friends really would like to play MC with me! 😁