EDIT: Latest Window 10 update (KB3176938)FIXES THE PROBLEM. Please update now. Original post below.
Due to the Windows 10 Anniversary update, Xbox One controller connectivity has become broken while using Oculus software. You may experience the issue if the Xbox One controller fails to register button presses when playing VR games.
We are working with Microsoft to try to understand the issue and resolve it in a future update. However, in the meantime, there is a work-around that has worked for some users.
Basically, you want to power cycle the controller while a VR app is running. So first start the VR game like normal. Then remove the USB cable for the controller, or remove the batteries, then reinsert. This can temporarily resolve the issue.
You can also try this solution, that some people are saying can work as well. Plug the Xbox One Controller into your PC via micro USB cable. Download and open the 'Xbox Accessories' tool from Windows Store. Click update.
Hey, some of our testers are experiencing the issue with the Xbox One Controller (four axis in the controllers properties instead of three). We want to support the case where the controller is using this driver, but I can't reproduce it on my computer. I have the driver number 10.0.14393.0 (Xbox Controller), but I just can't wind a way to use the XINPUT compatible HID device with number 10.0.14393.103 to test and make the right mapping in Unity.
I'm sorry...but you are absolutely mistaken. I just installed this KB x64 myself - did not work after restart. Latest windows - all updates....and manually installed your KB myself.