Yes, it is one of the tiny 1x2 USB transmitters. I have ordered a USB sound card which will be here in a few days. I am hoping that fixes the connectivity issue.
@welby I have tried moving my transmitter further away from my controller too, but no luck. With the transmitter being one of the Chinese cheap eBay units I'm not sure I am able to make any adjustments to power since it didn't come with instructions.