With my settings above you can use the DPad and analog stick at the same time but the emulator recognizes both as DPad inputs..
I just mapped the controls up, down, left and right on the dpad and the analog stick. The emulator reacts with the same input when i use the dpad or the analog stick.

I haven’t figured out how to activate the real analog stick. I read somewhere else that you could activate it with some command but can’t find the source of that. There was written that if you activate the analog stick it will only work in games that require a dualshock 2 controller.