FxSound distorts sound with PS4 wireless controller even if disabled

Hello Billy,
Welcome to the forum.
As for the wireless controller/USB connection, I honestly have no idea.
However, I can copy-paste this list of general, simple settings you should probably check first, before we can move on to further troubleshooting (don’t worry, they won’t take up much of your time):

  • Make sure you have the latest version installed, v1.1.16.0, from fxsound.com;
  • Try running FxSound as Administrator;
  • In Windows Sound Settings, make sure all your devices match at the setting “24 bit 48000 Hz” (max);
  • In Windows Sound Settings, make sure the FxSound device is set as the Default Device;
  • In Windows Sound Settings, disable Exclusive Mode for all devices (Playback ànd Recording);
  • In Windows Sound Settings, disable all Enhancements including Loudness Equalization for all devices (except for FxSound which doesn’t have this tab);
  • In Windows Sound Settings, disable Hardware Acceleration;
  • In Windows Sound Settings, disable all devices you don’t use, including the hidden ones.

One more tip by @vincent:

Please go through these items first, and post back with your results.
If the issue persists, we will explore further steps.