this is a bug that has existed since about last September. you'll have to disable joystick in the settings and use Xpadder to emulate the mouse through your controller's right stick potentiometer, as well as to assign your in-game keyboard bindings to the control pad face buttons, or to axes of the left potentiometer and/or directional pad. last i'd just like to point out how they ruined the air controls for KB+M users in the first place, specifically to include controller support for the console release -- and then broke those controls for PC-controller users with no intent or even really any concern to fix it afterwards.