The new xbox one controller with 3.5mm jack has a different HW id and won't be recognized by the existing driver.
I had to borrow an older controller to install the driver. Then plug in my new controller and force the existing driver on this new HW.
Once the driver is installed, it works fine.
But running the driver installation won't actually install the driver (which allows you to hand pick the driver). The work around is like I specified earlier. You need to plug in the older model to force driver install, then the driver will be populated in the available driver list.