Issue with selection permanence and tab key

I am currently using a Royal Kludge (RK68) with my Mac Studio and have been having trouble with the "Tab" function.

When I press Tab, the selection will jump to something strange such as the red close window button or maybe select an asset like the bold option button at the bottom of this text box. I am not sure if this is an issue with the keyboard or if it is an issue with a setting I have on my computer but it makes getting work done fairly difficult. This also happens with something that I have clicked recently.

Additionally, I will switch to another window, say Messages, and I will have to hold Shift in order to make pressing the Space Bar work as it is supposed to. If I don't, this blue selection box will appear from whatever I had selected in the previous window or menu. See the attached photo.