When using any Gyro capability on Steam Input, the game will recognize any mode (Except Joystick mode on Steam Input for Gyro activation) as a mouse input and therefor switch back to Mouse and Keyboard controls, hindering any other controller input, rendering it useless.
The way to fix this is by disallowing any mouse input for aiming purposes to cause a switch over to MK input mode, this is for when using any Gyro Input method on Steam Input other than Joystick mode.
Joystick mode feels weird and is generally not recommended, as it conflicts with both the right stick deflection output and gyro output and this can't be fixed, but as of now it's the only mode that works as it only outputs controller mappings, but even with all these negatives, you also can't use Crosshair aiming, because the controller output causes Crosshair mode not to work at all, as it apparently is only intended for MK, which doesn't make any sense.
The best way to use Gyro on Steam for any game, is for a right stick deflection to cause the gyro to be deactivated, in order not to conflict with each others input, when for example deflecting left, but moving your controller to the right.