Xbox controller input (connected via bluetooth) is responded to when MSFS is run in windowed mode but is not the focused window or is minimised.
Yes, as it should be 
No, not really. What they’re saying is that the game continues to respond to xinput events even when the game is not in focus or minimized. This is not how it should be and is a major problem since it prevents you from playing any other xinput enabled game while the content manager is working without coming back to a million new tabs in your browser because the A and Y buttons both open different links in the patch notes.
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Thanks for adding some explanation, I see my description was a bit sparse in retrospect 
I’ve just tested it to be sure I wasn’t misremembering and the problem is not just in the update launcher, also in the menus and whilst on a flight (admittedly you probably wont be looking at another game mid-flight but you might whilst parked on the apron before beginning the actual flying).
Yes, I’m aware of that 
It has been disabled in the past like this and caused a little riot.
People weren’t able to check charts or look at other windows while controlling the plane. They then reverted it back to this.
I think making it a setting would be best.
If this it the case, then it needs to be limited to only when the simulation is running, ie. when you’re in a flight. There’s no reason for the game to continue processing xinput events while in the main menu or when the simulation is paused and the in-flight menu is covering the screen and the window is not in focus.