This can happen when the controller firmware is updated while connected to XIM. Some controllers have the ability to downgrade and some don't. Unfortunately if your controller isn't able to downgrade then using another controller should resolve the issue until this controller can be updated again in the future without XIM connected.
This seems to be caused by updating the controller firmware while XIM is connected. A fix was found by downgrading the controller firmware:
1) Unplug XIM
2) Open Xbox Assist from games & apps
3) Get Help (top left)
4) Console & Accessories > Controller > My controller has connection issues after the last update > Check controller firmware > Revert firmware
Once the firmware is reverted it can then be updated without XIM connected.
