I have the same issue with original Apple hardware:
MacBook Pro 14 M1
USB Apple Keyboard
USB-C Ethernet Adapter with 3 Port USB 2.0 Hub
After updating to 12.3.1 Monterey the keyboard worked fine at first.
Later, sometimes, it would not be recognized after sleep mode. Unpluging and pluging it in again fixed the problem.
But now this trick does no longer work. The keyboard is not recognized anymore.
Funny thing, the same keyboard works fine on another Laptop and another USB Apple Keyboard works fine as well.