Caps lock light is always on

Hi everyone, I would appreciate your help with my 2020 MacBook Air. My caps lock key works normally, it triggers Caps Lock on and off, but the green LED light does not turn off. This problem only started about a week or so ago and I don't know what triggered this to start as my MacBook hasn't had any water or other physical damage.

I have reset and SMC and NVRAM a few times but this doesn't fix the problem. When resetting NVRAM the light turns off but immediately turns on again when I turn the MacBook on again. I have also let the MacBook completely lose battery until the light turned off, but the light turned on again as soon as I plugged it in.

I'm not even sure if this is a software or a hardware issue. The caps lock key otherwise works as normal and is not stuck, it's just an issue with the LED.

I don't know if this is relevant, but when I press any other key on the keyboard the caps lock key light dims.

Thanks in advance for your help.