I have an iPac-2 and just updated fresh install of 7.1.1.
I have the same exact issue as @smashDde above. I see the devices listed. It tired making a file for all the devices displayed. (The kbd one should be the most logical) .. but nothing works. I deleted all the ones that were listed by default. Created one of the devices. Rebooted and repeated that over and over. None of the documentation indicate whether or not to delete the existing files or to create all of the device names listed by-id in the xarcade2jstick directory.
Doesn't matter what I try, the recalbox emulation station controller setup area does NOT see a keyboard there by it doesn't let me hold a button and program the keys! But get this, I can use Joystick 1 perfectly up,down, right,left... I can press player 2 switch 1 and it effectively acts as the "A" select key on the keyboard. Basically, there is a mapping of sorts, but it's totally messed up. And with NO way to reprogram the button mapping.. The new version of recalbox is a step or three backwards. Poor documentation does not help at all I might add.
If you know how to manually edit the emulation station keyboard mapping to bypass the keyboard detection thing.. that may be useful.