When the Caps Lock key is depressed the keyboard no longer functions properly in the following ways: (a) when typing (obviously the text is in all caps at this point) the Space Bar no longer functions to create a space between words being spelled out in all capital letters. (b) when attempting to type a numeral -- for instance the numeral '2' -- the character output to the application is the '@' symbol. In other words the Caps Lock key is mimicing the behavior of the Shift key in the strictest sense rather than the loose sense of changing lower case letters to upper case when a letters key is depressed.
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