Catalina Update on 26 May 2022 triggered Secure Input Problem: here is the solution

Catalina Security Update today 26 May 2022 → Mac OS no longer recognized most (not all) keyboard maestro and other app keyboard shortcuts.

Problem
update enabled Secure Input
Secure Input definition (from KM Wiki)
Secure Input Problem aka Secure Keyboard Entry Problem
Mac OS X will not let applications watch the keyboard when you are in a password field (to prevent hackers getting hold of your passwords). However, the system can sometimes get into a state where it thinks it is permanently in a password fields.

Solution

  • click on KM status icon → see if secure input is enabled → see culprit all in (), in this case terminal.
  • disable (uncheck) secure keyboard entry in Terminal app

KM Wiki (best) (see text below)
https://wiki.keyboardmaestro.com/assistance/Secure_Input_Problem
KM Forum (Short)

Smile (TextExpander) (well written)