Hmm. I was just about to post that nothing happened after reseating Gary and Denise (and Paula for good measure)... but it looks like the behavior HAS slightly modified:
hold stick L, nothing happens
hold stick R, nothing happens
hold stick U, cursor moves down 1 pixel; release stick, cursor moves back up
hold stick D, cursor moves right 1 pixel; release stick, cursor moves back left
Wondering if I should replace Gary and Denise... obviously something happened...