Installed MSFS202 on my old machine using my computer parts that were running MSFS202 prior to the upgrade and same thing, 2 PCs exactly the same scenario as I have posted, crashes with joysticks connected and works with joysticks un-connected, I belive its something to do with the Xbox login and the joystick files being stored on the cloud and its not getting them.
Im going to create a new Xbox login as I have the Steam version so hopefully its not tied to my MS account, and see how it goes. If that doesnt work I will wait for the patch and if it doesnt work then I will wipe it off until the next patch as I have given up way too much time to this issue for now.