I found a way to get the transport buttons working! After pulling my hair out for an hour I found a thread on another forum that had a method that worked for me.
Go to your options>external devices>add
Click "Control Surface" at the top. This tells Studio one that what you're about to set up is a control surface and not a keyboard or instrument. (Your keys will still play notes just fine, don't worry)
Then go down the big list of preset devices to "Mackie">"Control"
This is the weird part. Set your "Receive From" to "MIDIIN2 Keystation 49" (Might say "MIDIIN3", "MIDIIN7", etc)
Then set your "Send To" to "Keystation 49" It won't say "MIDIIN", just "Keystation 49"
Click okay and pray to whatever god, deity, quantum entity, or cosmic force you believe in.
For me this makes Play work normally,
Stop to stop playhead, and if pressed again return to start of timeline
Record to work normally
I am really hoping I didn't do anything weird that might make this work for me but not others.