I fixed this by editing boot.ini and adding usbhid.quirks to this line:

setenv bootargs "${bootrootfs} ${console}"

like so:

setenv bootargs "${bootrootfs} ${console} usbhid.quirks=0x16c0:0x75e1:0x040"

I know this topic is old but I was having this same problem with recalbox 17.12.02 and this was the top Google result for "recalbox 3h dual arcade".