Magic Keyboard with Touch ID not working on MacBook Pro 13-inch, M2, 2022

I recently purchased a new "Magic Keyboard with Touch ID for Mac models with Apple silicon (USB-C) - US English."

I was able to pair it with my machine, a MacBook Pro 13-inch, M2, 2022, on Sonoma 14.6.

All the standard number and letter keys work properly, plus Tab, Shift, Return, Delete, Control, Option, Command, Escape. But when I try to use keys in the top row to adjust screen brightness, change volume, or use Touch ID, there is no response. The same is true with the Fn key in the bottom row. Also, all keys lack backlight.

The product page compatibility info lists my machine (MacBook Pro 13-inch, M2, 2022) as compatible: https://www.apple.com/shop/product/MXCK3LL/A/magic-keyboard-with-touch-id-for-mac-models-with-apple-silicon-usb-c-us-english?fnode=b49ff0b725776ac8cc99db96dac910f107e1886ad5eacc1a8fd3fb7293a2431e9295cc92f6e762812cd5ca94e8c98ccb116f884c09c0fe82c92349a9b20c047249c6e7003e0e05ecea4c420fb126a58c72c26aeeb235ccb160e8158e156f2f8b1149f52ac8cf2a417b934299946479e1&fs=f%3D13inchmacbookpro2022m2%26fh%3D36f4%252B4603%252B8cddbe

I have reviewed related posts here and checked/adjusted settings as recommended:

In Settings / Accessibility:

• Full Keyboard Access is Off
• Slow Keys is Off
• Sticky Keys is Off
• Accessibility Keyboard is Off
• Mouse Keys is Off

In Settings / Keyboard:

• Press [fn] key to: Show Emoji & Symbols
• Keyboard Navigation is Off
• Input source is correct (A US)
• Use F1, F2 keys as standard function keys is Off

I have also tried other suggestions, including removing and re-pairing the keyboard, toggling Bluetooth off/on, shutting down my machine and unplugging it for a few minutes and then re-pairing. Nothing has helped.

[Re-Titled by Moderator]