Mouse middle button scrolling not working with sys-usb

This exists since 4.1. While installing 4.2, the installer connected USB controller to dom0, and I noticed that the middle button works when connected to dom0.

Later on I have enabled sys-usb. Now i need to manually call xinput to enable middle button scrolling. Otherwise the middle scroll does not get enabled.

xinput set-prop $DEVICE $SCROLL_PROP 0 0 1

my device is a Lite On IBM USB Travel Keyboard with Ultra Nav Mouse.
It is weird that when the device is connected to dom0, no additional configuration is necessary, but otherwise requires manual config.

This is my device’s info:

$ sudo lsusb -v -d 04b3:301e

Bus 007 Device 008: ID 04b3:301e IBM Corp. Keyboard with UltraNav (SK-8845RC)
Device Descriptor:
  bLength                18
  bDescriptorType         1
  bcdUSB               1.10
  bDeviceClass            0 
  bDeviceSubClass         0 
  bDeviceProtocol         0 
  bMaxPacketSize0         8
  idVendor           0x04b3 IBM Corp.
  idProduct          0x301e Keyboard with UltraNav (SK-8845RC)
  bcdDevice            3.07
  iManufacturer           1 Lite-On Tech
  iProduct                2 IBM USB Travel Keyboard with Ultra Nav
  iSerial                 0 
  bNumConfigurations      1
  Configuration Descriptor:
    bLength                 9
    bDescriptorType         2
    wTotalLength       0x003b
    bNumInterfaces          2
    bConfigurationValue     1
    iConfiguration          0 
    bmAttributes         0xa0
      (Bus Powered)
      Remote Wakeup
    MaxPower              100mA
    Interface Descriptor:
      bLength                 9
      bDescriptorType         4
      bInterfaceNumber        0
      bAlternateSetting       0
      bNumEndpoints           1
      bInterfaceClass         3 Human Interface Device
      bInterfaceSubClass      1 Boot Interface Subclass
      bInterfaceProtocol      1 Keyboard
      iInterface              0 
        HID Device Descriptor:
          bLength                 9
          bDescriptorType        33
          bcdHID               1.00
          bCountryCode            0 Not supported
          bNumDescriptors         1
          bDescriptorType        34 Report
          wDescriptorLength      65
         Report Descriptors: 
           ** UNAVAILABLE **
      Endpoint Descriptor:
        bLength                 7
        bDescriptorType         5
        bEndpointAddress     0x81  EP 1 IN
        bmAttributes            3
          Transfer Type            Interrupt
          Synch Type               None
          Usage Type               Data
        wMaxPacketSize     0x0008  1x 8 bytes
        bInterval              24
    Interface Descriptor:
      bLength                 9
      bDescriptorType         4
      bInterfaceNumber        1
      bAlternateSetting       0
      bNumEndpoints           1
      bInterfaceClass         3 Human Interface Device
      bInterfaceSubClass      1 Boot Interface Subclass
      bInterfaceProtocol      2 Mouse
      iInterface              0 
        HID Device Descriptor:
          bLength                 9
          bDescriptorType        33
          bcdHID               1.00
          bCountryCode            0 Not supported
          bNumDescriptors         1
          bDescriptorType        34 Report
          wDescriptorLength     139
         Report Descriptors: 
           ** UNAVAILABLE **
      Endpoint Descriptor:
        bLength                 7
        bDescriptorType         5
        bEndpointAddress     0x82  EP 2 IN
        bmAttributes            3
          Transfer Type            Interrupt
          Synch Type               None
          Usage Type               Data
        wMaxPacketSize     0x0005  1x 5 bytes
        bInterval              10
Device Status:     0x0000
  (Bus Powered)

This is the udevadm output:

sudo udevadm info /sys/bus/usb/devices/7-1.3.3

P: /devices/pci0000:00/0000:00:09.0/usb7/7-1/7-1.3/7-1.3.3
M: 7-1.3.3
R: 3
U: usb
T: usb_device
D: c 189:775
N: bus/usb/007/008
L: 0
V: usb
E: DEVPATH=/devices/pci0000:00/0000:00:09.0/usb7/7-1/7-1.3/7-1.3.3
E: SUBSYSTEM=usb
E: DEVNAME=/dev/bus/usb/007/008
E: DEVTYPE=usb_device
E: DRIVER=usb
E: PRODUCT=4b3/301e/307
E: TYPE=0/0/0
E: BUSNUM=007
E: DEVNUM=008
E: MAJOR=189
E: MINOR=775
E: USEC_INITIALIZED=42313222260
E: ID_BUS=usb
E: ID_MODEL=IBM_USB_Travel_Keyboard_with_Ultra_Nav
E: ID_MODEL_ENC=IBM\x20USB\x20Travel\x20Keyboard\x20with\x20Ultra\x20Nav
E: ID_MODEL_ID=301e
E: ID_SERIAL=Lite-On_Tech_IBM_USB_Travel_Keyboard_with_Ultra_Nav
E: ID_VENDOR=Lite-On_Tech
E: ID_VENDOR_ENC=Lite-On\x20Tech
E: ID_VENDOR_ID=04b3
E: ID_REVISION=0307
E: ID_USB_MODEL=IBM_USB_Travel_Keyboard_with_Ultra_Nav
E: ID_USB_MODEL_ENC=IBM\x20USB\x20Travel\x20Keyboard\x20with\x20Ultra\x20Nav
E: ID_USB_MODEL_ID=301e
E: ID_USB_SERIAL=Lite-On_Tech_IBM_USB_Travel_Keyboard_with_Ultra_Nav
E: ID_USB_VENDOR=Lite-On_Tech
E: ID_USB_VENDOR_ENC=Lite-On\x20Tech
E: ID_USB_VENDOR_ID=04b3
E: ID_USB_REVISION=0307
E: ID_USB_INTERFACES=:030101:030102:
E: ID_VENDOR_FROM_DATABASE=IBM Corp.
E: ID_MODEL_FROM_DATABASE=Keyboard with UltraNav (SK-8845RC)
E: ID_PATH=pci-0000:00:09.0-usb-0:1.3.3
E: ID_PATH_TAG=pci-0000_00_09_0-usb-0_1_3_3
E: ID_FOR_SEAT=usb-pci-0000_00_09_0-usb-0_1_3_3
E: TAGS=:seat:
E: CURRENT_TAGS=:seat:

udevadm walkthrough for the device:

  looking at device '/devices/pci0000:00/0000:00:09.0/usb7/7-1/7-1.3/7-1.3.3':
    KERNEL=="7-1.3.3"
    SUBSYSTEM=="usb"
    DRIVER=="usb"
    ATTR{authorized}=="1"
    ATTR{avoid_reset_quirk}=="0"
    ATTR{bConfigurationValue}=="1"
    ATTR{bDeviceClass}=="00"
    ATTR{bDeviceProtocol}=="00"
    ATTR{bDeviceSubClass}=="00"
    ATTR{bMaxPacketSize0}=="8"
    ATTR{bMaxPower}=="100mA"
    ATTR{bNumConfigurations}=="1"
    ATTR{bNumInterfaces}==" 2"
    ATTR{bcdDevice}=="0307"
    ATTR{bmAttributes}=="a0"
    ATTR{busnum}=="7"
    ATTR{configuration}==""
    ATTR{devnum}=="8"
    ATTR{devpath}=="1.3.3"
    ATTR{idProduct}=="301e"
    ATTR{idVendor}=="04b3"
    ATTR{ltm_capable}=="no"
    ATTR{manufacturer}=="Lite-On Tech"
    ATTR{maxchild}=="0"
    ATTR{power/active_duration}=="1927922"
    ATTR{power/autosuspend}=="2"
    ATTR{power/autosuspend_delay_ms}=="2000"
    ATTR{power/connected_duration}=="1927922"
    ATTR{power/control}=="on"
    ATTR{power/level}=="on"
    ATTR{power/persist}=="1"
    ATTR{power/runtime_active_time}=="1927753"
    ATTR{power/runtime_status}=="active"
    ATTR{power/runtime_suspended_time}=="0"
    ATTR{power/wakeup}=="enabled"
    ATTR{power/wakeup_abort_count}=="0"
    ATTR{power/wakeup_active}=="0"
    ATTR{power/wakeup_active_count}=="0"
    ATTR{power/wakeup_count}=="0"
    ATTR{power/wakeup_expire_count}=="0"
    ATTR{power/wakeup_last_time_ms}=="0"
    ATTR{power/wakeup_max_time_ms}=="0"
    ATTR{power/wakeup_total_time_ms}=="0"
    ATTR{product}=="IBM USB Travel Keyboard with Ultra Nav"
    ATTR{quirks}=="0x0"
    ATTR{removable}=="unknown"
    ATTR{remove}=="(not readable)"
    ATTR{rx_lanes}=="1"
    ATTR{speed}=="1.5"
    ATTR{tx_lanes}=="1"
    ATTR{urbnum}=="27479"
    ATTR{version}==" 1.10"