I had the same issue with my PS5 controller. For me the fix was to go to steam settings -> controller -> “playstation controller support” set to enabled (the default was "enabled in games w/o support). For some reason I had to change that option to make it recognize input in games.

Oh, you’re right. They have that option and it works, thank you. Though now I wish they had a setting to allow only one specific key. I see it’s either function keys/function+whatever you press while holding function key/everything. But then again, I only use 2 applications running in xwayland so it’s fine.

The only thing that’s keeping me from Wayland full-time is the push to talk mess. I use Mumble to talk with friends. Under Wayland, to make it work you have to force mumble to run in the xwayland mode and even then, push to talk will only work when you’re focused on xwayland windows. Want to look up something on web browser? Cool, now your push to talk button won’t register. You have to click on any currently running xwayland application. As I need that push to talk on a regular basis, it’s absolutely infuriating.