Hey dude, I'm happy to say that I FINALLY just found a solution for my problem, but most likely it's not what's wrong with yours. You might just have a faulty unit, and suggest that you replace it while it's still under warranty.Hi, I found this thread because I’m experiencing the same problem on my M1 MacBook Pro. I’m a junior developer and I use this computer for remote work. This issue started a few days ago. I’d worked through the night and the next morning when I tried to pick up where I left, my computer acted like the shift key was stuck, selected a large portion of code in my editor, a lot of chaos really. I decided to restart it but then it logged me out as I could not enter my password in the correct case. I spoke to Apple support and they had me reset the SMC but to no avail. After several restarts and using an external keyboard to gain access, it temporarily stopped. Then it got started again barely 24hrs later. I’ve turned on the accessibility keyboard and relocated the shift key using Karabiner to the fn button but now that frequently brings up the emojis and makes the delete button act up. I thought I might find a solution here. What’s frustrating is this computer is barely 8 months old.
As for my problem, after a ton of troubleshooting I was able to pinpoint the issue to a faulty Wacom driver, so whenever the SHIFT start acting up I just fire up Activity Monitor and kill com.wacom.TabletHelper, and the problem disappears instantly. (pinging @beckpeck idk if this works)