Since the latest “Xbox” update my joystick is not working. In the Controls Options section it shows up as an option and you can adjust the sensitivity so it seems to be installed ok, just not recognised at all in flight. As such MSFS is currently unusable.
I am having the same problem using my Thrustmaster Cougar U2 NXT HOTAS. Throttle and rudder pedals (JOYSTICK L-AXIS Z) work fine but the Joystick (JOYSTICK L-AXIS X and Y) is unresponsive for flight control. The white horizontal lines do not move on the CONTROLS OPTIONS or SENSITIVITY windows for the L-Axis X and Y. The white balls move on all the bold white axis lines in the SENSITIVITY graphs for my Joystick (JOYSTICK L-AXIS X and Y) and Throttle (JOYSTICK L-AXIS Z).
Problem resolved, Extremity Dead Zone set at 100%. Reset to 0%.