This is not a solution but a workaround meanwhile the bug is fixed:
Steam have two type of controller configurations, Desktop type and Big Picture Type. If you connect a controller and open the game it will use the Desktop controller. [I'm using a PS5 Controller] so I need to go to Steam -> Settings -> Controller -> General Controller Settings and check the box that says Playstation Configuration Support in order to use the Desktop controller config. (note that the controller is listed in the Detected Controllers). Now if you open the game normally [Non big Screen Mode] the game will map and render the XBox buttons and the bug will happen on game, this is because its using the default mapping on the Steam -> Settings -> Controller -> Desktop Configuration Config.. For now, the only thing you can change to play the game without the issue is Browse in that screen for the config in the Templates section that says "Keyboard (WASD) and Mouse" and apply this config. The issue happens with any controller type mapping but not as a Keyboard mapping.
