Kinda redonkulous cause with Windows 10 it reinstalls that update and the problem resurfaces! LOL
Anyways, I've found a workaround tho to get my controller to work! All you have to do is have the controller plugged in (wired or wireless) and start the game. When you get to the "Keyboard" screen and it want you to press X on the keyboard to continue, all you have to do is unplug the controller from the pc and press X on the keyboard, then hit the windows button on your keyboard and that should take you to the desktop. Reconnect your controller to the pc and open the FF8 game (which was minimized when you pressed the windows button), you should now be on the Main screen and your controller should be working now!
It also works on FF7 too. When you get to the "Keyboard" screen, disconnect the controller from the pc and press X then reconnect the usb controller to the pc and the controller should work after that.
Note: don't go into the config for the controller, you won't be able to go back to the ingame menu if you do.