New iPhone 17's keyboard (left side) is not very responsive and it flickers

I can't attach a video, but I received a new iPhone 17 today and there are two issues with its keyboard.:

• left side of the keyboard is not very responsive. "A" ,Shift, and "123" (esp this) - I have to click SLOW, making sure i'm tapping the center of the key. If i tap the left edges then they wont get clicked. I type fast so it is causing issues. I have to either click 3-5 times or click very slow.
• when i swap the keyboard 123 <-> ABC, the keyboard occasionally flickers and won't change. i.e. I click 123 -> keyboard swaps to 123 for like 0.1 sec and then swaps back to ABC.

i have to use a new device asap as my old iphone 12 is almost failing, but it'd be kinda hard for me to visit a physical store (i dont have a car so i would have to take Uber just for this) to get a replacement. I contacted apple support and followed every advice, nothing helped. They just told me to get a replacement (which will take long) or just order a new one and return this.

My question is, is this a known issue? Is anyone experiencing this? Is this a hardware problem, or software problem??