Controller Assignments appear incorrect for UI when "Skip Assigning Gamepad to Player 1" is set to true

When using a controller to navigate/ interaction with UI it appears that the "Skip Assigning Gamepad to Player 1" option is not taken into account when assigning input for UI.

1. Download the attached project
2. Plug in an Xbox controller
3. Open project
4. Play in Editor
5. Use the Arrow keys on the keyboard to navigate the buttons
6. Use the controller's Dpad to navigate the UI

Result: Both the keyboard and the controller control the same UI
Expected: The controller would control the UI assigned to player 2 (player controller 1) and not affect player 1's UI (player controller 0)