I just connected the controller by USB and it seems to work in wired mode OK with the beta client, so it's just Bluetooth mode that is broken since 1685572056.
I don't know where my original steam controller dongle is so I haven't been able to test with that.
Looks like this is fixed in 1686092969
Nothing extracted yet.
Your system information
sysinfo: https://gist.github.com/af7567/116fce41c62c14d52ca4a72ece7cb9e0
After today's update my steam controller is not recogised by Steam any more, it was working OK last night so seems to be something from this update. The controller connects via Bluetooth.
I tested with the stable steam client and it works OK still then, I see the following message in the terminal when turning the controller on:
Also get the steam popup saying that it is loading controller settings and the light on the controller dims since that is how I set it.
But in the beta client nothing happens at all and the controller just works as a mouse with the light staying on full brightness.