Hi, thanks for the suggestion. Changing the file didn't help. But I did get the controller to work by switching to bluetooth. It seems plugging in the controller with USB-C is the issue. I can use the controller with a cable on Tunic without a problem but not with They Bleed Pixels. Maybe its another weird Mac thing.
I have a standard Xbox Wireless Controller. https://www.xbox.com/en-US/accessories/controllers/xbox-wireless-controller