Following the video check in from last Tuesday (https://inputmapper.com/90-check-in-apr-18-2017-windows-10-exclusive-mode-fix-may-be-coming-for-im-1-7-and-1-6) I have since found the stand alone service does in fact fix the exclusive mode issues for both IM 1.7 and is backwards compatible with IM 1.6 and possibly earlier (untested).
Download the service and filter driver pair at: https://inputmapper.com/downloads/download/5-tools/76-inputmapper-hidguardian
This update coveres some previous mentioned fixes and removed HidGuardian from the application to be replaced with a different method in future releases as covered here: Check In: Apr 18 2017 (Windows 10 Exclusive Mode fix may be coming for IM 1.7 and 1.6).
Bug reporting and debug dump now fixed.
A possible solution that I am spit-balling that may be able to make use of Benjamin's HidGuardian in a more stable manner and may even be backwards compatible with IM 1.6.
I neglect to mention however that HidGuardian is STILL, and has a good chance of remaining, only compatible with USB and the official Sony Wireless Dongle (http://amzn.to/2nZ5akN). Seriously if you haven't switched over to one of these things yet you really should.
Recommend Windows 10 users DISABLE automatic update:
Getting a lot of reports that Microsoft Creators update has broken Inputmapper 1.6 from functioning at all. I have not tested yet as Microsoft has not publically pushed it as an update yet but I would avoid it until we figure out what is going on. For those who have already updated early I have been told that InputMapper1.7 works so long as you DO NOT INSTALL HidGuardian (Do a custom install and un-check it). More to come once the update is pushed publically and I have had a chance to test.
How to disable automatic updates: http://www.windowscentral.com/how-stop-updates-installing-automatically-windows-10