I hope that you see this, because I would also like to report that this also happens in the free play lobby of casual matches where 1-3 players sit in a multiplayer version of Free Play together.
You're welcome to tag me! You almost always tag me in bugs so it's helpful.
I'll report this now but can you confirm what exactly the behavior you're seeing is? When you're in a free-play lobby with other players, the controls when using a controller don't work in the menus? The input goes straight through the menu into the game?