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What does the command ls /dev/input show? If there are entries like js0, js1 etc. this indicates that the OS has registered joystick devices. If Xarcade2Jstick is properly running one of the jsX files represents player 1 and another one represents player 2 on the DualStick.

You can test these devices on OS level, e.g., with the command jstest /dev/input/js0. Adjust js0 to js1, js2 etc. accordingly.