macOS Monterey 12.3 causing game controller issues

Multiple users are reporting that the most recent macOS Monterey update is causing issues using game controllers.

As noted by MacRumors, users on Apple's Developer Forums and Reddit have been reporting this issue over the last week or so. One Redditor stated:

Controller support is completely broken with macOS update 12.3.

My DualSense controller does nothing when paired over bluetooth after updating. Tried with multiple different games:

Apple Arcade games like Tetris Beat

Non-App Store games: Hollow Knight, Disco Elysium, Hades — Seem to work okay (basically any app that doesn't use the native GameController framework but uses their own custom framework works fine)

The post has multiple upvotes and some reports of similar issues, although not everyone seems to be having trouble. A similar thread on the developer forumrs reads:

I tried to connect my xbox controller to my MacBook, even though the controller is registered in bluetooth setting, but it doesn't function at all. Have anyone met the same problem and if there's a fix for this problem

Again, multiple comments indicate others are having the same issue. Plenty of people seem to suggest that their devices can detect and even connect to these controllers, but that they don't function once paired. The news is another unwelcome quirk of macOS Monterey, earlier this week it emerged that the latest 12.3 update was bricking the Macs of users who had previously had their logic boards replaced by Apple.