Taking a screen cap with Snagit causes KM engine to hang. Problem is definitely associated with screen captures. Clipboard appears to be corrupted, because attempting to paste into another application either has no result or causes the app (Affinity Photo) to also hang.
MacBook Pro (13-inch, M1, 2020)
MacOS 11.0.1
Keyboard Maestro Version 9.2
Snagit Version 2021.1.1 (98033