Thanks somethingbrite,
The cursor was on the actual simulator. I can click on the cockpit and navigate the menu which appear at the top (ATC, Weather, Views etc.) using the cursor only. I can also access the setting menu using ESC button on the keyboard, but the simulator does not register any commands from any connected peripherals. I have check the active window is the the flight simulator.
The peripherals appear to be connected when in the simulator setting and they do respond.
I don’t know what’s going on.
I also lost 200 hours of flight time from my log due to this update.