A while back something caused a horrible bug that would make it close to impossible to play Pode co-op with a keyboard and a controller. We were not paying close enough attention, so the problem persisted way longer than it should have. That's on us.
It had been a long time since we looked at the Pode code base so it took some rummaging around but we were finally able to root it out and squash the dang thing. Phew!
(If you're not seeing the update yet, you might need to wait (up to 24 hours) and/or restart your Steam Client.)
Happy adventuring!