Earlier quoted context omitted.
The Xbox controllers are used to control the periscope which is not a safety critical device. Regardless, the navy uses wired controllers and did extensive testing and verification. This outfit didn't do anything like that; in one video with a journalist the bluetooth controller was a 'feature' because they could pass it around the sub.
US UAV/Drones use xbox controllers too
https://www.tomshardware.com/news/steam-deck-controls-a-real...
Edit: consumer joysticks normally use potentiometers, which aren't great for deadzones/drift. For things like dust incursion reasons along it would make sense for any industrial/military device to be using hall effect based joysticks.