Controller never shows up in steamvr, strange "Testing Controller %1$s" popup in test screen

[FlaggAC]

Going to the test controllers screen pops the above up for a very brief moment (less than 1 second before disappearing). Then I do not see the ovr walkinplace controller on the menu. I am concerned that this popup is caused from the application and there seems to be no way to get rid of it and clearly looks like the system is in a bugged state. Is this popup normal / expected behavior or a sign of anything wrong?