Hm, I just tried it with two bluetooth ps4 controllers on svn core. It works. I tried holding same dpad buttons, change them here and there and it still works fine.

Because these keys are different, it is the same like playing on keyboard.

What is your android version?
Does dpad hang if you play single player?
Do you have other phone by hand? To check where the problem lies – phone or gamepads..

Btw, I see that you are connected with usb-c to hdmi probably, in dex mode probably. Can you try disconnect it and try it without it?