I downloaded it properly and was able to see your game and check out the logic you used. Though after applying it to my game, the right stick does not move like your demo. In fact the sword I am using to swing around the player, Rectical should follow, moves almost in only 4 directions and always comes to a stop pointing lower-right. The Rectical does not follow and after going from mouse to stick and back again to mouse, the mouse no longer functions properly. I added all the Global events like your demo and placed the Logic at the very top of my Event List. Here is what I have so far.
+ System: Mouse.X ≠ Mouse.X
+ OR System: Mouse.Y ≠ Mouse.Y
-> System: Set mouseX to Mouse.X
-> System: Set mouseY to Mouse.Y
-> System: Set control to "mouse"
+ System: Else
----+ Gamepad: Gamepad 0 Right analog X axis ≠ 0
-----> System: Set control to "gamepad"
+ System: control = "mouse"
-> Reticle: Set position to (Mouse.X, Mouse.Y)
+ System: Else
+ System: control = "gamepad"
-> Reticle: Set position to (lerp(Self.X, ((Gamepad.Axis(0,2)+100÷200))×LayoutWidth, dt×10), lerp(Self.Y, ((Gamepad.Axis(0,3)+100)÷200)×LayoutHeight, dt×10))
+ System: Every tick
-> Camera: Set position to (lerp(Self.X, Player.X,0.10), lerp(Self.Y, Player.Y,0.10))
-> Sword: Set position to (Player.ImagePointX("Sword"), Player.ImagePointY("Sword"))
-> Sword: Set angle toward (Reticle.X, Reticle.Y)
+ System: On start of layout
-> Camera: Set Invisible
-> Mouse: Set cursor to None
+ Reticle: Is overlapping Sprite
-> Reticle: Set animation frame to 1
+ System: Else
-> Reticle: Set animation frame to 0