I also now tried the jstest /dev/input/js0 and js1 commands and both controllers are correctly seen by Linux… :(

I started Retroarch gui setup and saw that the controllers are also correctly in there. When i checked system information it said that the VID/PID for both controllers are 0/0

Tried my Rpi3 with the same USB hub and this worked fine with two players… :( :( :(