Nevermind. I am an idiot.. I plugged it in a second time to my computer and this time it showed that the firmware was old. like 232 instead of 243. I updated the firmware and now the gestures are working as intended. Sorry, I am such an idiot.
You're not an idiot. I would also have assumed a new diamond controlled lightsaber would have had the newest firmware added before being shipped out. I have about a dozen diamond controlled lightsabers and all have the new firmware on them - all purchased that way - AFTER the newest firmware release in 2018.