Uh yeah from your profile it's pretty obvious what the problem was. So to clarify: 1) ff7.exe is NOT a Steam exe. Mods don't work with the Steam EXE, so you are using the patch exe included with 7H 2.0. 2) The controller add-on for ESUI of course requires ESUI to be active in order to work (I'm not sure why Chrysalis hasn't specified that in his mod code, I'll bug him about that). You had the controller add-on active (which modifies dialog to show the controller buttons), but not ESUI which it is dependent on, so of course your dialog broke.
Also ESUI is newer, fewer bugs, has more features and is updated more often than User Interface--you should keep ESUI on. You don't need to disable the User Interface mod--ESUI turns off the old ESUI that is built into User Interface automatically, but you can keep User Interface on for all the other cool stuff like avatars and backgrounds.