Keybinds stop working when using Caps-lock

I have a simple keybind to replace the ± button with the ~ button. However it seems that in many cases where I need to enable the Caps-lock key the application crashes and causes my Apple Magic Keyboard 2 to disconnect. Forcing me to turn it off and on again, only to find my keybinds are no longer working.

I end up having to restart my entire laptop for the problem to go away.

I've encountered this issue many, many times over the ast few months since I have installed Catalina, am not loving this and would love to see a fix quickly.