controller stopped working with xCloud (gamepass cloud gaming)

Gamepass does not come with xcloud

Gamepass ultimate does come with cloud but you don't need a console and not all titles are on xcloud

Well cloud gaming isn't on gamepass for pc

That's only for xbox gamepass ultimate though we dunno going forward with the new.Ubisoft xcloud

Keep in mind the xbox gamepass ultimate must be on her account and can't be gameshare for xcloud to work

Cloud is a subscriber perk only

I had the same issue. The controller worked for navigating through Xbox app. but when a Xcloud game is launched, the inputs stopped working. I force stopped Xbox app and unpaired controller and removed it from Bluetooth devices. After reconnecting, the controller is working in Xcloud games. Hopefully it will fix your problem too. And it is for sure that this error is of Xbox app.

only games that are in gamepass are on the cloud gaming service, and only gamepass ultimate subscriber can use the service, it is not like nvidia cloud where you access your games.

you can stream your games from console using your own console and your own internet.

Xcloud does not take into account if you own the game or not, xcloud is a perk of ultimate sub only and not to play the games you own.