keyboard - modifier keys not working - command-control-option - etc... No Copy Paste/Find/screen capture

So I have a bluetooth/wireless Matias Keyboard connected to Mac mini M1. Sometimes I get connection issues, but this is not why I'm posting here. About 1 month (or more) I noticed that when I tried Command C or Command V copy or paste does not happen - in fact I get a strange character in place of the text I'm trying to copy - a weird C for copy and and a wired V for paste. Control F for Find doesn't work. Control Z - undo doesn't work. I also can not perform Shift-Cmd-3 or 4 for screen capture. I've seen same issues posted on Apple's Help Forums, but no one gave any good reason for this - nor does it offer a solution. Well there was one comment to perform a "fn" "0" and that should help. It actually worked - but the solution did not take - doing the same operation doesn't do anything. I've removed the keyboard and reconnected. Didn't help. Someone mention in Modifiers Keys to turn off the Option Key - that didn't work. If I fo to Keyboard Setup Assistant - it doesn't recognize the keyboard input. Was this an OS update that caused this issue. I've had this same keyboard for 3-4 years and never sa this issue. I'm on MacOS 12.6

Can anyone here please provide a solution?