After updating to Catalina the name of the Kensington Expert Mouse Buttons were renamed in the system(?) and no longer worked in KM.
The old naming was 'Kensington Expert Mouse Button #2'
They were renamed to Kensington Expert Mouse (no button word).
My 'old - pre catalina' triggers in KM still had the button name in it.
Once I 'reset' the triggers, they worked as they should.
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You probably have to reset the USB Device Key triggers when you upgrade to Catalina.
If Keyboard Maestro cannot detect the key (when you try to reset it), then that is a seperate problem that would have to be dealt with (either it would be an accessibility permission issue, or possibly some problem with Catalina and or the driver for the mouse).