It’s something to do with the the set up for joystick configuration I think. This problem CTD after latest update (Update #5) - #306 by OldFogeyPNW .
I think this is what happened.
The setup for your controls is kept online connected to your XBox ID. At some point this storage format was changed, and the upgrade only works sporadically. So the set up for joysticks got stuffed - mine was a very ordinary T16000, which displayed exactly the same characteristics of CTD that yours apparently does.
The setup is stored in XML files, one for each device, and when they are wrong, the simulator crashes when you plug in the stick- it tries to read them, and finds them wanting.
These config files exist somewhere in the FS2020 tree, and have to be amended or deleted (from memory, I just deleted mine and set the joystick up again, but I’m not sure you can just delete the lot - have a look at that thread and similar).
It’s a known problem, so it might maybe be fixed when they release the update tomorrow (?). It shouldn’t be a complex fix, if the file is corrupt, just bin it with a warning message rather than CTD.