Ok I fixed it. Wow that wasn't simple LOL! I installed AutoHotKey and created this script that fixes the diagonal strafing problem on the T.Flight Hotas X. You have to set the strafing options in the game to use the arrow keys on the keyboard (Up, Down, Left, Right) and the script will use them to strafe in all 8 directions on the HAT switch.
Here is the AutoHotKey script:
https://pastebin.com/1ybGZVcp
Unfortunately I'm no AutoHotKey expert (please don't laugh at my script too much) and I cannot provide support for this script if it doesn't work for you. It works for me though so I'm stupid happy right now! I CAN FLY MY SHIP AGAIN!!!
Just a side note I'm pretty tootin' sure this would NOT be hard to code directly into the game itself without the need for AutoHotKey since it only combines keys that the game already recognizes and doesn't need any "under the hood" coding of the way the game itself works. Of course you'd have to translate it to whatever the game is written in but that shouldn't be too hard for people that wrote this great game to begin with. Hello? Devs? Please feel free to use this to fix the game if you would like to. You have my full permission!!!!
