No , inputs work , You must do this:
From launchbox it creates a configuration file, in tools - emulaters - retroarch - (example) Aracde 2 - Arcade -L "cores \ mame_libretro.dll" -c "mame.cfg" .
Now go to random Aracde game in Launchbox - right click, edit -
Open Game - F1 - set DirecX11 or 12 or whatever you want , Full screen etc.
QUIT (autosave )
Open game again .
F1 - > DIsable AUtoSave , go to INPUTS , set inputs (Up-down Selct= Coin , Start = 1player etc. )
Now , F1 Again , TAB , SET INPUT FOR THIS GAME (not all game) , set the commands as you wish , TAB, and F1 again , SAVE CORE OVERIDE .
And now commands work .