Impossible to get Yubikey USB to work on System with USB kb mouse + Nvidia Dedicated GPU

Question at end.

System:
-Running 4.1
-Only has dedicated Graphics Nvidia GPU
-Has USB Keyboard + Mouse (working)
-Is able to detect USB storage devices, in devices dropdown (working)

Issue
-Yubikey not detected in devices dropdown
-Strangely Yubikey is able to send one-shot password string to all qubes
-In any individual Qubes settings, when assigning either of two usb controllers displayed to the qube, the mouse and keyboard stop working and display stops working

Question:
On this system how do I correctly enable USB, so I may use Yubikey with a Qube?

Please help and thank you.