FINALLY FIGURED IT OUT.
After some extensive testing and troubleshooting.
The gc-adapter works only under one condition.
YOU HAVE TO START SMASH BROS FIRST.
it seems somehow when smash bros starts it initiates the controllers otherwise they don't respond and HID TEST detects the adapter but not the controller.
So basically this is how it works.
1) start smash
2) return to menu
3) start vwii
4) HID test will work and detect the controller.
This works whether the adapter is connected to the front or back.
I didn't create a controller.ini yet but the button presses are recognized.
Btw even wiiu mode won't detect the controllers being connected if you don't start smash first.
So smash is doing the initiation and somehow staying active whether in wiiu or vwii mode.
Good news and bad news.
GOOD: is that once the device is initialized you can hot swap controllers.
I started HID TEST with only one wavebird.
Connected a second on the 2 port and it detected the buttons right away.
If you notice the pictures above with the offsets. The first half is port 1 and second half is port 2.
BAD: seems can only have 2 controllers.
When controllers plugged in Port 3 and 4 the button presses make the receiver light up but HID TEST doesn't have enough offsets to show the button presses. I'm guessing a small update to HID TEST will fix this.
Keep in mind all testing done one wavebirds as I don't have wired controllers.
If you start HID TEST without starting smash first this is what you'll get.
If smash was started first this is what you should see.
FIX94 Howard JoostinOnline
if you guys would like me to try some code updates with the GC Adapter, I'm happy to oblige.
Anything I can do to help, let me know.