Hitting spacebar highlights a random area of the screen

Hi guys,

I have been facing a weird issue wherein every time I hit spacebar, a random are on the screen gets highlighted by a thick pink border (border color comes from the theme).

This affect the ability to add spaces in between words

Finders randomly starts to minimize- maximize and window resizes, all happening automatically like animation.

I am not even sure if it is just the Keyboard issue or some setting has changed

Some of the major issues are above and the minor ones I won't mention as they are not affecting work so much.

Any help is very much appreciated.