Okay so i got it working...kinda. I got it so the correct configuration will load (the one you have set for For Honor will load properly, instead of your desktop configuration loading.) No crashes and everything works as it should...
BUTTTT....Overlay doesn't load, and you can't press the steam button to access Big Picture mode.
But I can live with that...just happy I finally got the correct configuration to load! Now I can actually try the GAME!
Step 1: Add the ForHonor.exe to your library. You will launch the game from this exe through Steam Big Picture mode...not the Uplay.exe or anything else.
Step 2: (Optional) Rename the ForHonor.exe in big picture mode (manage shortcut - Change Shortcut Name) to "For Honor" no quotes. This will allow you to select from a few pretty nice pre-made user configs for the game...they are at least a good starting point.
Step 3: The important one. Turns out getting this to work was a god damn simple setting! Under manage shortcut select Controller Options...and
UNCHECK "ALLOW DESKTOP CONFIGURATION IN LAUNCHER".
And that's it! Your correct configuration will now load. Yay! Now you can leave your Desktop Config in peace!