The feature to use the locked X and Y with the bumper pads is not working. No success with switching modes either.
Welcome to the 1F community!
To lock X and Y, make sure you hit the relatively small LB/RB button, not the larger trigger buttons underneath (a bad design decision IMHO, I naturally go for the larger buttons 
).
If you use the correct button, it could be, of course, that you received a faulty unit but most likely you need to the appropriate mode with the center glowing button (see also):
If you’re confident you’re doing it right, I would contact support to see whether you should not exchange the unit.
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I agree the button choice sucks and would prefer the triggers.
I also wish they would solve the mode problem by either making the joypad work in its default mode or the controller switch modes on boot if that can be done.