Mac OS Big Sur login screen stuck on pressing a key with Magic Keyboard

[Gamusren]

Mac mini M1 (Mac OS 11.2.3) - When waking up from sleep(usually a night) the login screen keeps repeating as if I am pressing some key and would not let me input the correct password. I have tried following things:

1. switching to a different user. RESULT: same issue, immediately after I press any key (looks like character keys) the textfield gets spammed with long string of unknown input, and the screen flashes with jittering.
2. press restart. RESULT: when I see the alert screen that asks me for my username and password, I can seem to see even weirder issue. The username section appears to be getting the correct characters, but with tons of space and lags. (For example, if I press "big apple", the input becomes "big apple" with seconds of lag between each characters.) And for the password, the similar thing to issue 1 happened, it will just keep pressing a certain key to no end.
3. Restart my Magic Keyboard. RESULT: Does not fix the issue, after the system recognizes the keyboard again, the same issue reappear.
4. Force Restart Mac mini by pressing the physical button. RESULT: Worked, but I have to do this every time and it's dangerous for my unsaved progress.

Please help me fix this issue, it just started to appear recently and I don't recall installing any suspicious software that would interfere with such specific operation.

PS: I have contacted Apple Support and they are really not helpful, as if I am trying to get support from my grandma. They claimed booting into safe mode will solve the issue immediately, but the thing is, the reboot itself will fix the issue temporarily. It is not even a workaround.

 

[Design08]

My new wireless magic keyboard seems to have a mind of it's own. One of the keys or multiple keys seem to be depressed on their own causing me not to be able to control the screen. It does not do that all the time. It also makes the noise as if some key is being held down. I think the keyboard itself is faulty. I have only had this for 2 months. My old wireless works fine.

 

[Tozovac]

My new wireless magic keyboard seems to have a mind of it's own. One of the keys or multiple keys seem to be depressed on their own causing me not to be able to control the screen. It does not do that all the time. It also makes the noise as if some key is being held down. I think the keyboard itself is faulty. I have only had this for 2 months. My old wireless works fine.

I have this issue 1/3 of the time I wake my M1 Mac mini from sleep. I think I fix it by plugging in the keyboard directly to the Mac mini and turning the keyboard off then on. Frustrating to have my Mac not "it just works."

 

[Tozovac]

Now it's been doing it all morning. Only leaving it plugged in fixes the issue. Ugh.