Using controller to "wake up" console causes erratic movement on screen without input

Hello Kraken 322, as much as it sounds like a loss for an answer, it sounds like your controller is likely just coming to the end of it's life cycle. After 2 years of use, the small parts that tell the xbox where the joysticks are located on their axis get
worn out and start to cause some erratic movements. Your best solution would be to pick up a new controller, which isn't a perfect solution as it costs a fair amount of cash, but you can also try picking up a used one. Hope this helps a bit.

If the controller goes back to normal (non-laggy) responsiveness after the console wakes, there's probably nothing to worry about. The delay is likely the controller and console reinitializing the wireless connection once the console goes back into active
use.

When the screen dims after the console hasn't received any input, it will eventually turn off the controller to save batteries. The controller will need a second to re-sync once you get back on.

I am also having the drift issue with a controller. It pretty much makes a game unplayable if it requires fine motor movement because the character keeps moving foward without any input.

Common problem. The software issues disabled the Kinect functions entirely on several levels. It no longer recognizes any movement to wake the console up after it sleeps, it does not hear and recognizes a small movement or voice commands, even if it is calibrated
correctly.

Were there any controllers connected? If your controller is suffering from control drift this could cause to send inputs to your console and prevent it from idling. Try disconnecting any controllers and see if you're able to trigger the screen to dim.