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



Why would you buy a steam controller and not use it with steam?
For the same reason I use PS3 and PS4 controllers to play PC games. I don’t even own a PS4. A controller should preferably be usable as a generic gamepad. Not that the PlayStation controllers necessarily are, on windows I always needed shady programs for that, but I’d expect better from Steam
Why would you drink rum out of a whiskey glass?
The whisky glass brings out more notes in the nose of the rum.
Maybe you received it as a gift or found it for cheap secondhand?
So gifts and second hand items should magically work in a way they weren’t intended to?