After much more testing, I can conclusively say that plugging in a PS4 controller via USB just doesn't work.I even tried using "DS4Windows" to make the game think it was an X-Box 360 controller, which didn't change anything.
Sorry, I dont have a PS4 controller and have not been able to verify that. But I hope to suppot it in the near future.
Thank you so much for answering that question! yes, you can initialize the settings by deleting "setting.sav".