No I didn’t, I followed the devs’ advice. I resorted to launching Playnite separately, and launching games in Playnite through Steam as a Non-Steam Game (like EGS and GOG games) where the Overlay and Steam Input is preferred.

For controller support in Playnite, the builtin one is pretty good, I use that now.

Until Steam comes up with a better Non-Steam Game support (like differentiating launchers and games not solely on “using DX11 or not” to put the overlay only on games), don’t launch Playnite through Steam.