I been dealing with this issue for almost as long I have my steam deck. Whenever I use desktop mode the steam overlay keyboard doesnt work. It pops up and lets me choose to press keys (the key gets highlighted) but nothing is ever entered. When I plug in a physical keyboard it takes a full second to recongnize the keypress.

Gaming mode the steam overlay keyboard works fine.

Any suggestions to fix this issue ? Or should I just reinstall steam os ? TIA