[2021] Xbox one S - controller working in the menu but not in the game

Hey All,

Today when I started the bow challenge at the Oskoreia festival I went to the menu to reduce the sensitivity of the left joystick and after that the controller stopped working in the game. Everything is fine in the menu, I can use controller perfectly in the game menu, but when I go back to the game I can't move at all, no buttons are working apart from the menu button. I tried everything literally, set back the controls to default, hard reset Xbox, update controller etc. bit still nothing
Anyone has any idea what to do?
Thanks!