The reason why you cannot change gears when you turn it off and on, and that telemetry is the dpad instead is because when you turn off the wheel off and on it becomes the Fanatec CSR wheel.
I tested it and what happens is when you start the game with the wheel, if you go to the controller option menu, you will see a picture of the speed wheel. But if you turn it off and on the controller is replaced with the CSR fanatec wheel with all it's button mappings and also the steering seems to be different from if it was on the speed wheel settings. If you want from this screen you can change steering type to 5 where X and B are the gear up/down button.
If you want it to recognize the speed wheel as a speed wheel you need to log out of the game and start it up again with the speed wheel. This is a PAIN as when I tune I gotta use my controller since the speed wheel doesn't have LB/RB buttons. Which means that I gotta turn my speed wheel off, turn on controller then turn my speed wheel back on. Which means now it gets recognized as a Fanatec CSR wheel rather than the speed wheel.
I posted this in another forum why this ruins tuning for me:
I also find that when this happens. the steering is slightly different.
So I would be tuning then test, tuning then test all on the 'CSR
fanatec wheel' calibration. So next time I exit the game and log back
in, the controller is back on the wireless speed wheel and it feels
slightly off. It could be placebo and they are the same but it doesn't
feel like it.