Caps Lock light not illuminating on iMac keyboard after waking from sleep

OS 12.7.6

After waking my iMac from sleep, the caps light does not illuminate when pressed, although it does switch from lower case to caps when typing. I then have to turn the keyboard off and then on to get the caps light working again.

But if I lock the screen and then unlock it, the caps light illuminates, as it should.

I tried removing the keyboard in Bluetooth preferences and then reconnecting, but that didn't solve the issue.

[Re-Titled by Moderator]

Original Title: Caps Lock light issue