Seems like part of the issue is connected to if the player tries to select a button that was just disabled. on controller if a button is disabled while they were hovered onto it and they select again before trying to move to another button, their ability to move to adjacent buttons seems to break. And just to clarify this is not an issue with the navigation problems verse UI also has for controller, it is purely just losing the ability to select buttons. This still breaks if the buttons are perfectly aligned in a grid.
Honestly a good solution would be to give us the ability to refocus a players button selection. If a player opens their friend menu, for example, it obviously removes the button selection on the verse UI. If they close their friends menu they will regain focus onto the verse UI. Being able to have a function call that does exactly that would ideal to at least have a viable workaround for this issue.