Shift key is always on but computer boots regularly

FYI, for an M1 Mac the Shift key no longer puts the new M1 Macs into Safe Mode. In fact all of the older special startup keys used on the Intel Macs no longer apply to the new M1 Macs.

Have you tried using an external USB keyboard? Depending on the problem with the laptop an external Keyboard may work.

Most likely you will need to have Apple or an Apple Authorized Service Provider examine the laptop to provide you with a repair estimate.

If the Caps Lock appears to be on, then try pressing the Caps Lock key one time to see if maybe it will toggle the setting so you can enter your password. I actually am working on an Apple laptop right now which will sometimes show the Caps Lock is engaged even though the keyboard LED is not lit. I have to press the Caps Lock on the keyboard to toggle the setting in order to enter the password (the Caps Lock LED is then lit, but the Caps Lock indicator on the password entry box is gone). On the laptop I'm troubleshooting the keyboard is working normally once I log into it (although it still has other issues). The laptop I'm repairing is an Intel model.

Certain items won't work with M1 hardware Macs. NVRAM and SMC have no equal

and therefore do not mean anything by using 'Intel-based' Mac inputs, to M1 SoC.

(While some aspects may be performed by command-line terminal, etc.)

A support article tells use of Recovery key sequences ~ in undamaged Mac M1s.

Likely MacBook/Air needs assessed: w/ repair estimate done to determine faults:

• Genius Bar Reservation and Apple Support Options - Apple

https://www.apple.com/retail/geniusbar/

[ Get hardware help is indicated]

• Use macOS Recovery on a Mac with Apple Silicon - Apple Support

https://support.apple.com/guide/mac-help/macos-recovery-a-mac-apple-silicon-mchl82829c17/11.0/mac/11.0

After a list of items Apple silicon does different, but before separate references..

This list appears to offer other ones, that would eventually helpful, before issues:

You can also use macOS Recovery to perform the following tasks:

• Start up your computer in safe mode
• Set the default startup volume and restart your computer
• View the recovery log
• Create a recovery diagnostics file

Some other helpful items can be found in other system specific topics.

[An Apple Genius appt or AASP service inspection & repair is advised.]

Good luck & happy computing!🌞🙈🤖😼

To test the startup in Safe mode with Apple silicon, try these steps:

•Start up your computer in safe mode

1. Choose Apple menu > Shut Down.
2. Press and hold the power button on your Mac until you see “Loading startup options.”
3. Select a volume.
4. Press and hold the Shift key, then click Continue in safe mode.
5. The computer restarts automatically.

[To use 'external wired keyboard' with USB-C adapter may help troubleshoot.]