Is the condition brand new?

Item appears to be new, sealed in retail box.

Does the bigger dongle have more options or is it just an older model. Also with this dongle can it handle more then one controller?

Dongle that came with Controller was smaller newer version. Item can handle more then one controller. I believe 8 different controllers can be used. I haven't confirmed this, but that is what's advertised.

Questions & Answers: Microsoft Xbox Controller + Wireless Adapter for Windows

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Item#: N82E16826105767
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Microsoft Xbox Controller + Wireless Adapter for Windows

Play with your Xbox Wireless Controller on Windows 10 PCs, laptops, and tablets
Responsive thumbsticks and an enhanced D-pad provide greater precision
Grips and contours have been designed to fit your hands more comfortably

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