This is my effort to help everyone and stop redundant posts. Despite this driver will receive no more updates there are a few work-arounds to look into. First and foremost, Here is the words quoted by FranticRain (owner and Developer) himself to help everyone clearly understand the current state of this driver.

The state of this repository (xbox driver) going forward

FranticRain:

As stated in similar issues that have since been closed, 360Controller will not work in Big Sur. Kernel extensions are deprecated in Big Sur, which is what 360Controller is. Conceivably a replacement could be written in DriverKit, however I believe that users should transition over to Bluetooth versions of Xbox controllers, as they have official support from Apple. This official support means a better experience for both users and game developers. And I definitely don’t want to be responsible for fragmenting that ecosystem.
On top of that, as stated previously, I am no longer able to contribute to open source, so I won’t be making any further changes to this repository.

⚠️ IMPORTANT:
(1) Uninstalling the Driver on Big Sur will give you an Error, the only way to uninstall it is manually.
(2) ONLY install the driver after you have followed the steps below in before installing section. It will still say "Installation Failed" this is normal ignore it. As long as you follow the terminal steps below, xbox controllers will worked again wired. Xbox One Controllers model 1708 will work via bluetooth after a firmware update.
(3) As of currently late January 2021, using Windows Parallels on an M1 Mac will not work for any controller, and will give you constant issues.

MANUALLY UNINSTALLING THE DRIVER

Goto the following locations and find the following files. Either drag them to the trash, or select them and press (Command+Delete)
_EMPTY THE TRASHCAN!!!
Use the check boxes for your convenience

Important - Before you can even access these files you need to gain access to your main drive which apple has disabled by default (thanks apple lol)

Summary of Steps to Enable Drive in Finder Sidebar:
(1) Click on the desktop or the finder on the dock
(2) click on "finder" in the menu bar
(3) click on preferences
(4) select the "sidebar" tab
(5) check the box for "your name"'s Macbook (whatever your devices is)
(6) exit this window and go to your finder window
(7) navigate to Macintosh HD (Follow steps below)

Steps to Uninstall the Driver

• Macintosh HD/Library/Application Support/MICE/360Daemon.app
• Macintosh HD/Library/PreferencePanes/Pref360Control.prefPane
• Macintosh HD/Library/LaunchDaemons/com.mice.360Daemon.plist
• Macintosh HD/Library/Extensions/360Controller.kext
• Macintosh HD/Library/Extensions/Wireless360Controller.kext
• Macintosh HD/Library/Extensions/WirelessGamingReceiver.kext
• Macintosh HD/Library/Extensions/WirelessOneController.kext

BEFORE INSTALLING THE DRIVER!!!

(1) Update your Controller Firmware
For Xbox Controllers this is done by either your Xbox through a wired conncetion or Windows 10 App from the app store called "Xbox Accessories" also a wired connected is needed. For all other controllers check you manufacture website for support.

(2) Manually adding driver support to Big Sur
In order for the Xbox driver to work this must be done First. Afterwards, like stated before insatlling the driver can be done, it will still fail but will not fucntion with wired controllers (not elite).

If you play on steam you will need to do these same steps before installing steams gamepad driver; just using steams dev id instead for step 2. The full post for the steam method on are located in this link if your curious. [Fix.for.game.controllers.on.Big.Sur.Steam.for.Mac.pdf] (https://github.com/360Controller/360Controller/files/5792061/Fix.for.game.controllers.on.Big.Sur.Steam.for.Mac.pdf)

STEPS:

1. Boot into Recovery mode (hold ⌘-R at boot). Open Terminal (Utilities -> Terminal).
2. Type spctl kext-consent add G947KKM5RL
3. Press return.
4. Type kmutil trigger-panic-medic --volume-root "/Volumes/Macintosh HD"
   (If driver name is different then replace “Macintosh HD” with whatever your drive is named; press Tab at the end of typing "/Volumes/" to get a hint).
5. Press return.
6. Reboot.
7. Once at desktop, load terminal
8. Type sudo kmutil load -p /Library/Extensions/360Controller.kext

NOTE: Installing the driver may still say failed, don't worry about it. After rebooting, it should work for both wired and wireless for Xbox One / X Series Controllers. Make sure to update your controller firmware prior to this via any Xbox or Xbox Accessory App on Windows 10.

OTHER CONSIDERATIONS:

(1) Use Windows Bootcamp
Using bootcamp for Games instead has proven to be a useful alternative, and use macfancontrol to keep CPU cool via full blast.

(2) Advisory for Xbox Elite controllers
Elite Controllers generally will only work on Windows 10 or an Xbox Console; until it gets a firmware update and full support is added to big sur, steam, and games.

Currently, for steam after installing the “Big Picture gamepad driver” Elite controller will work via bluetooth only with limited support (only some games will work)

(3) Consider Downgrading to macOS Catalina
you can choose to do this on you main parition after you back it up, wipe your drive and re-install, or easier just install a second partition on your driver for Catalina just for games (also can use a NVME SSD for this as well via thunderbolt)

(4) Check your controller is compatible with this Driver
https://github.com/360Controller/360Controller/wiki/Compatible-controllers

(5) Using Controllers with STEAM®
Controllers will not work with steam on Big Sur, unless you have:

(a) repeated the terminal steps above replacing the dev id with Steams ID instead
(b) installing Big picture mode gamepad driver
(c) making sure steam preference controller settings are checked on for you controller and can be identified.

HOPE THIS HELPS