I was able to use a different usb bluetooth device and was able to fix the problem.

I am somewhat new to this and am trying to set it up for the first time. I have a micro dell PC that has a bluetooth adapter in it that I am using for recalbox 6.1.1. If I boot into a terminal and I run

hcitool scan

I can see the wireless controller and other bluetooth devices.
In the UI when i hit connect to wireless controller it does not seem to find it. I have reset the ps4 controller but it is still not working when its in pairing mode. Any pointers would be appreciated.