Controller Issue: Old DS4 Vs New DS4

I play Killer Instinct on Windows 10. While experimenting with using Dualshock 4 controllers, I found an issue with using different versions of the DS4.

I have 2 of the previous versions of the DS4 (Model CUH-ZCT1). I recently acquired a new model of the DS4 (Model CUH-ZCT2). KI won’t recognize any of the controllers when I sync them via Bluetooth. Windows does see the controllers connected and I can confirm they work when playing Steam games with DS4 support on. Note, I’m using internal bluetooth, not an adapter.

When I connect the old model via USB, KI recognizes and plays just fine natively. No extra software is running. The newer model does not work via USB.

Oddly, in the Windows 10 “Bluetooth & other devices” menu, when I connect the New controller via USB, it appears under Audio Devices, rather than “Other Devices” like the older models.

Has anyone else experienced this issue? Anyone know a way to correct it? I realize I can just use the old models (or Xbox controllers), but since the new model is what will be inevitable replacements for broken controllers, I’d like to have a solution for this.