While the joysticks do their job (Move the player around), They do not do their other job which is interacting with Mini games and Udon.

There are worlds that rely on the Joystick for interactions with objects such as vehicles, this world is an example: https://vrchat.com/home/launch?worldId=wrld_0679be89-ab9d-46c3-b5f5-b7ed05a78022

The problem comes from the fact that in the SteamVR bindings for WMR, the Joystick is completely replaced with emulating the Trackpad for movement. As far as VRChat is concerned, moving the Joystick moves the trackpad, which is not Ideal. That means there are overall less inputs to work with.

Fortunately, the solution is DEAD EASY!

In the "Set Up Legacy Actions" tab there are 2 actions named "Left Second Trackpad/Thumbstick Value" and "Right Second Trackpad/Thumbstick Value" which are unbound that can be used. I have posted images showing how they should be used to solve this issue.

Note: The issue is also present in the HP Reverb G2 controllers.