I Have the same issue; I believe it's related to the latest update applied by Microsoft,
there's no issues in the drivers, connect everything you want, even PS5 controller, but the PS4 one is not being detected as a controller at all, when connected as a USB, it's suddenly a "sound device".
When connected as Bluetooth, it's a Wireless controller , but with no functionality.
Any controller will work, except PS4 one, and I can assure you that deleting the drivers and devices won't work .
so kindly fix this issue the soonest possible.