There is no need to place x360ce.exe inside the game folder.
You can also find X360CE video tutorials on Currently we are working on version 4.x update, fixing bugs and moving from Microsoft's old “Windows Forms” to latest “Windows Presentation Foundation” application interface. To solve the problem, version 4.x was created, which doesn’t use custom xinput1_*.dll file, but creates virtual controller. Therefore version 3.x doesn’t work with these games any more. Some new games or old games after their latest updates do not permit custom xinput1_*.dll file.
Version 3.x uses custom xinput1_*.dll file. The x360ce.exe application version 4.x uses Virtual Gamepad Emulation driver ViGEmBus by nefarius.