I'm experiencing the same situation, I ran the Monterey upgrade yesterday and since my keyboard start acting out. I cannot add space with the space bar but not everywhere, for example I would be able to add space in a google search bar but not in my development software (PyCharm) terminal but the space works perfectly in mac terminal. It is very frustrating to try to do my work and get stuck and slowed down by such problem. This issue should be fixed promptly as it impact our works days and degrade the efficiency of my apple product, very disappointing