Alright @shades42, after hours of having the same issue as you, I finally found out the problem.. it’s easy you will see.
Just unplug your keyboard
0- Turn off your PI
1- Make sure you only have your PS3 or Xbox controller plugged in with instructions from @dudleydes
2- Start Kodi and enjoy!!
Hope that works for you. It looks like the cause of the problem the mapping in changed because of what ever Raspbian detected for your keyboard. So the region changed for the mapping. I was using a Apple Keyboard, and with another keyboard when I was pressing buttons it was different characters. As soon I rebooted without a keyboard, everything worked and man, it’s now a complete solution that Retropie/Emulationstation/Kodi. I must say that I have cloned my SD card and it will be some Christmas gift next year.