Software bug - cannot change keybord setting

In keyboard->shortcuts I have turned "Use keyboard navigation" ON, however I want to turn it OFF and i cannot. When I untick the box, it still behaves like before (tab and space abnormal behaviour for all applications) and after restart/shutdown, this option is still turned on. Is there any way to fix this? I tried: https://apple.stackexchange.com/questions/343842/keyboard-preferences-are-lost-after-each-restart, but it didn't help . I believe system upgrade to 12.2.1 might have caused this.