"You are trying to assign an action to a device that is not selected."

You’ll get this if there is an active input from another device when you are doing the scan. For some reason they decided to scan all devices for input rather than just the specific device you are trying to map a binding to.
I get this with a 3d Connexion Enterprise spacemouse so have it on a usb switch so I can disable it when I want to scan for input.