Getting keyboard cannot be identified at weird times, not working anyway

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May 19, 2021
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I just connected a Bluetooth mouse, and the Keyboard Setup Assistant pops up saying I need to identify the keyboard... but I'm on a MacBook 2019 Catalina using the laptop's keyboard. Its says to press the button to the right of the Shift key, which is Z (there's no button to the right of the right-side Shift key), which then pops up a window that says "Your keyboard cannot be identified."... what?! macOS can't identify the MacBook's keyboard after connecting a Logi Bluetooth mouse? That makes no sense.

Hitting any button here goes "bonk"; clicking OK then hitting any button goes "bonk". The only thing I can do is close the window; the keyboard is behaving as normal.

The Keyboard Setup Assistant pops up on any new keyboard I attach, but does the same thing. It NEVER recognizes the keyboard, it behaves exactly the same way, going "bonk" at everything no matter the context. It even does this to Apple keyboards, even wired ones. I'm just blown away. I've seen this on three different Macs (two iMacs) recently using either Catalina, Mojave, or Big Sur.

Can someone explain this?! I can skip the box each time, but then I'm not seeing how to configure the newly-connected keyboards because if they're not Apple ones, the Ctrl/Alt/Option/whatever buttons don't work right... I've configured these buttons in past years, but Apple seems to have removed the options to say which button does what. It'd be really nice to have a graphical overly in settings of the keyboard style I want, then click the key on that overly then tap the button I want it assigned to. Right now, Apple seems to be saying it knows best, and things aren't working.
 
Joined
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Your Mac's Specs
M1 Mac Studio, 11" iPad Pro 3rd Gen, iPhone 13 Pro Max, Watch Series 7, AirPods Pro
You can disable getting those issues by clicking on Advanced in the Bluetooth System Preferences pane. This is my setup on my Mini,

Screen Shot 2021-05-26 at 5.24.59 PM.png
 

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