I should clarify, that it's some sort of latency with the controller, at least that is what DS4 tells me. But yeah for a second or a few, I lose control of my character and my controller is not responsive, as if the inputs are stuck or not responding. The game runs fine and as expected, but the loss of control hits me here and againa.

In the past I thought it was my controller showing it's age, so I bought a new controller. Now I am experiencing this with a brand new controller. Mouse/Keyboard is fine with being responsive (not a keyboard player)

So I did a clean reset like you suggested. I started a Byakko EX farm group, and during the fight I got two spikes of controller loss.