Controller 1 is able to navigate the menu as normal, but if you hit the "Start" button on Controller 1, it'll flash the Add Player UI element but won't connect as Player 2, and the output log will show it's added as Player 2 and then removed as Player 2.
When pressing the "Start" button on the connected 2nd controller, Lyra does not recognize or respond to the second controller as the UI element for "Add Player" does not react when trying to add controller 2 as the second player
Repro Rate: 5/5
Regression currently under investigation
Expected Result: UI updates showing that Player 2 was added
Actual Result: Lyra doesn't respond to controller 2's input
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-178425 in the post.