Updated from 16.1 to latest nightly build, 17.2. RC1:

Wanna try it yourself, get it here:
http://mirrors.kodi.tv/nightlies/android/arm/Krypton/
So far no "controller found" message,
no crashes from music/party mode playback.
So far.
*crosses fingers
edit:Got the dreaded controller message again after a restart, ffs Krypton.
The message immediately got triggered when i pressed the "return" button on the remote.
This will not change with future Kodi versions, so Himedia have to do sth about it with a future firmware update.
edit 2:It seems to work if you update, but not with a fresh install.
I installed a fresh version of 16.1, set input settings for mouse/touch to OFF,
copied over my keymaps folder i had backuped, exited/restarted Kodi,
installed the 17.2 RC1 nightly - and now it works.
No controller message, no music crash.