The issue comes down to how the device interacts with your computer. Just like the original version, the new Steam Controller has no native Windows drivers. This means the hardware relies entirely on the Steam app to function properly. If you do not have the game running via Valve’s storefront app, your shiny new gamepad turns into a useless piece of plastic.
Gamers Nexus also reported this and there are a lot of other news outlets also covering this. It is kinda the same as with the steam deck where I noticed that the inputs just don’t work until steam is launched. I really don’t like that I have to have Steam running for this controller to work. I don’t know if it is a dealbreaker for me, yet, but it really put a damper on my enthusiasm about it



I plan on using this specifically with my docked Steam Deck, so I don’t mind. However, it’s a good point to make.
I don’t think it’s a big deal, though. The entire reason to buy this thing is for the integration with Steam Input and all the cool things you can do with the track pads, Grip Sense and everything else. Steam Input absolutely blows away any third-party input app I’ve ever used in the past from Logitech, Corsair, or whoever. I suppose to be fair, they should release a stand-alone Steam Input program.
If Apple did this, and required… I dunno… fuckin’ iTunes to run their Apple controller, I’d mock them and anyone who buys it, but I guess Valve gets a pass because I’m a fanboy.
I own one Epic game (Fenix Rising), and a few Humble games, and maybe a couple GoG, but 99.9% of the time I’m playing a Steam game anyway. I imagine the controller works fine for running a non-steam game that you’ve registered in your Steam Library.