8bitdo Ultimate 2 wireless controller

Not sure how to get this controller working in Bazzite. Bluetooth connection works but in games the input lag is so bad it is literally entire seconds between a press and the action. Keyboard and mouse are working just fine and the games run smoothly (tried Remnant and Palworld so far). In dongle mode I get a KDE notification it's connected but Steam and other apps say no controller connected. It also frequently reconnects in this mode. Not sure how to proceed in an immutable OS. Thanks in advance!
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