I can say I experienced this same issue with multiple games with a steam controller and a dinput controller.
I'll chime in with Bioshock Remastered. This bug can be circumvented by opening BPM and then launching the game.
same for me in Mad Max, Portal and Serial Cleaner. You can hear the inputs, when reopening the overlay, the selection hasnt changed though. Also pressing "a" a lot when having this issue, might sometimes cause the game to minimize randomly. Also steam doesnt have to be in BPM, only the overlay needs to.
Affected by this same bug. Can hear the overlay when i interact with the controller. Dont think its related to any particular game. Happens in many different games. I solve it by launching the game through Big Picture
This doesn't happen any more but it's because launching BPM overlay from the desktop client was rolled back. I'm assuming that Plagman is still trying to get it to work behind the scenes so it's still a bug, just not an active one to the user.
what is the status of this bug?
The Big Picture Overlay on the desktop no longer seems to be stealing my steam controller inputs as of the recent Dec 16 Steam Beta update
I can confirm. Tried Hitman 2 about a week ago and there was no problems while BPM overlay was on.
Closing per the last couple comments.
Nothing extracted yet.
Your system information
Please describe your issue in as much detail as possible (plus steps):
Enable the new Big Picture Overlay for Rocket League on desktop mode with a Steam Controller.
Enjoy having the overlay steal all input making it impossible to play and revert back to the desktop overlay.
Basically, even with the overlay closed, you can hear movements with the stick acting like the overlay is there and taking the input.