Magic Keyboard with Touch ID and Numeric Keypad (Model A2520)

I have been using this keyboard with my Mac Studio (2022 model macOS 13.4.1) for about 2 months - both bought at the same time from my local Apple Store back in February. In the last 2 weeks the keyboard will occasionally stop working - I don't recall if any particular App. The Mac shows the keyboard is still connected by Bluetooth so I do the usual and turn it off. Shortly after I get a "Keyboard Off" screen signal - but not as quickly as when I turn it off while it is working normally. When I turn to back on it starts to work after about 2 seconds, as Bluetooth automatically reconnects. Bluetooth mouse

I can not find any information and I am starting to think it is product defect.

Has anyone had a similar experience?