iPadOS Magic Keyboard captures hotkeys prior to input field *Possible Bug?

Yeah and the trick works everywhere except with physical keyboard on iPadOS. But even without trying to capture the event, I cannot type spaces in regular editable fields either.

I actually just recently found the following additional similar threads, and one guy seemed to have exact same problem but then said his problem went away?

Also, I wonder if this is somehow related (perhaps in fixing this bug the new bug was somehow introduced?):