I set it to CC mode, then set it up in Reaper the following way:
Preferences > Control/OSC/Web > Add > Mackie Control Universal > MIDI input > nanoKONTROL2 > MIDI output > nanoKONTROL2 > OK
That didn't work, so I downloaded the Korg editor to maybe configure it if need be, but it seems fine to me.
https://i.imgur.com/F8yeXQt.jpg
It tells me it's in CC mode, and that the faders are enabled, but still nothing happens when I try to learn CC in kontakt. Really don't know where to go from here. It's got to be something stupid. (I'm a noob)