It is definitely Bohemia's bug.
Yes, it could be because of DirectX, Windows, Microsoft, hardware but the bug is Arma related only, there are no similar problems with other applications.
So Bohemia could have just 2 ways, fix it or fix it.
When you develop for iOS for example, they deprecate code, sdk are changing all the time, rules are changing all the time. But everybody are searching for their own solution and fix what is wrong. So blaming Microsoft is bad idea in this case.
Of Course if other game titles has this bug, than some mails to Microsoft and the next update would bring the fix, but no, it's Arma only...

Same bug is reproduced for me.
I have XBOX one controller that dissapears when you open settings.
Windows 8.1

Reconnecting joystick is not helping.

This Bug is almost two years old already.. :(

yes, there are problems with that
but I don't think it's a good idea to create a "weapon" for that, just an action menu item should be enough.
u choose the action, and the player start's an animation (similar to medics) for about 10 seconds so the fire stops.. (maybe reusing fireplace action)

this issue will not affect single missions or campaign, so there is no any point to do what you ask.
just use mods.
may be you could ask this in some expansion in the future.