If no hardware damage is present, sounds like a KV issue.
First thing that came to mind, but I have all of that patched (XeKeys and $#!t). I can sign into profiles and whatnot just fine through the use of a keyboard, I just can't use a wireless controller.
Not sure if it's worth noting, but I just ran xbsetcfg /KIOSK on
The function in XBDM calls SetUserFlag and ExSetXConfigSetting.
Edit: Got it to work by unplugging everything (including RF module). The f***.