Update:
So i've installed steamOS and tested all 3 branches(stable, beta and main) and the problem is the same. joystick deadzone calibration settings not applying in gamemode. Even in controller settings>test device input deadzone settings are applying when testing, but for games it's not applying. I hope devs are aware and trying to fix this annoying bug. Maybe steaminput confuses rog ally x with regular rog ally? Because in settings controller identifies itself as asus rog ally, not as asus rog ally x. Those ally series handhelds are a bit confusing there are like 4 of them:rog ally, rog ally x, xbox ally, xbox ally x. Just a thought...
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I have asus rog ally x and the problem is that joystick deadzone calibration settings don't apply in gamemode, they only apply in desktop. so 2k or 18k deadzone it's the same in game mode, number is completely ignored and I guess default deadzone settings are used. Tried this on bazzite and on cachyos, same problem.