I have a Bluetooth controller connected to my device, game streaming enabled on my Xbox,...

"I don't know what Bluetooth is."

Bluetooth is a wireless technology, it allows you to connect Bluetooth enabled devices to other devices to allow them to be used via wireless, in this instance an Xbox One controller on mobile phone or tablet.

to use an Xbox controller on your phone you'll need to sync it to your device.

As for it being some kind of Scam, it isn't. I've not been able to test home streaming on a phone/tablet, but I've tested out the Xcloud preview and I'm pleasantly surprised!

Just because it didn't work for you or you don't understand how to set it up, doesn't make it scam.

What could it be used for? Imagine being in hotel with a fast internet connection but you've got nothing to do? Xcloud to the rescue. Connect your controller to the Phone or tablet and stream Xbox games to your device. Seems pretty cool.

I am using a PDP Wired Controller designed for Series X, Xbox Onez and Windows 10/11.

I have not tried cloud gaming with this controller on a different device as I would have no way to connect the controller and device (it is not Bluetooth enabled).

It seems like older bluetooth (below 4.0) devices prompt the password entry and the newer ones allow pairing without it. I just hope they improve the connectivity. I'll be playing a game via bluetooth and my controls will randomly spaz out sometimes. No
reason at all. I don't have any interference or other devices with bluetooth enabled around me (yes it's off on my phone). It has also randomly disconnected a couple times now.

I found that when I try to pair with a connected controller that the subsequent pairing doesn't work. When you connect to one device then another and then back to the first

(such as connect to PC then connect to Xbox or another PC then switch back to first PC)

the device can only recognize the most previous pairing. I have to remove the device from both, then manually add by selecting Add Bluetooth device then selecting Bluetooth.

I don't know if that's what you're doing, but it works for me only if I use the same devices every time.

I use two tablets so that I stream games to PC without having to hook a monitor up to my Xbox. I have to remove the device from both prior to shutdown so that the signal doesn't get confused. It's a pain.

The other workaround is move your Xbox closer to your PC (ie: the same room), connect your controller via Bluetooth to the Xbox, and stream to PC that way. Connecting to Xbox direct will get you a better signal and you won't have to worry about constantly
removing and re-connecting your controller.

Hope this helps.

Have you used the controller with anything else? E.g. laptop/PC, mobile phone? It could be trying to connect to another device. Mine did this sometimes. It tried to connect to my mobile phone for streaming play. I use a different one for Xbox now as the
GoW controller is the only one I have that is Bluetooth, so I keep that for my phone.