I also have the same issue with my 1-Day old Magic Keyboard. Haha shouldn’t have slipped myself to update a new firmware ever again. it was working just fine last night. now I regretted what I have done. my obvious issues are the Touchpad, sometimes it will just refuse to scroll in an app folder at all, and also else where like in Settings. it does work in here Safari but it shudders randomly while I try to scroll a page. sometimes the gesture will just stuck like I do scrolling all the time even with one finger. PS: Thanks to Dave5400 ,Turning off Assistive Touch seemed to help. (But now I have to re-enable Assistive Touch every times I took off the Magic keyboard. Good Job Apple! This is how you treat customers with $299 keyboard.) Disappointing!!