I did get it to work after some fiddling by remapping the controls in SteamVR.
Set the controller's left joystick to the Vive setting... I forget the specific name, but there should only be the one.
Once this is working and you get to episode 2, you might have issues with the panel overlay where the laser pointer simply isn't there so you can't pick anything or progress - you'll understand what I mean when you get to it.
Didn't find a good solution for this one other than tapping the watch to get to it to show and try to very clumsily point that way. Occasionally, if you tap a few times quickly it'll get stuck and you can use it to continue.
Good luck!