Controller thinks “y” button is being held down (physically not) help!!

The guide that Obsessive Power gave is a mostly correct solution. But to my knowledge, to reset the videosettings to default, you press Y and RT instead of X and RT.

So try the instructions from Obsessive Power again:

Turn off console.

On your first controller press Y and RT and keep them held down.

Turn the console on with the Guide button of the controller, and keep Y and RT held down.

Hold Y and RT until (hopefully) the dashboard appears.

Try performing the hard reset EXACTLY like this. Hold the power button on the console for 8 seconds or until the power shuts down completely. Unplug the power cord from the back of the console for 5 minutes. Plug the power cord back in and restart
the console.

Try going to the controllers and accessories section in your xbox settings and see if a firmware update is available for your controller.

May I also ask which game you are having this issue with??

Im still confused. You turned on your xbox, then just held down on the xbox button on your controller then also held down on the xbox button?

Have you held down the Y button long enough to see the option to select unlocked characters at the bottom of the wheel?