Question Strange issue on Pi, Keyboard doesn't work in touchscreen apps

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Having a weird issue with my 3B+. It has the latest raspbian lite, I am using the official 7" touchscreen display. The display works perfectly, I had to add some commands to flip it but it operates properly.

I'm using a USB keyboard in the console, also working right... in the console.

If I run my touchscreen app that this Pi is for (RaceCapture Pro https://wiki.autosportlabs.com/RaceCapture_on_Raspberry_Pi and https://wiki.autosportlabs.com/Raspberry_Pi_Tips ) the keyboard doesn't work in the app. If I exit the app the keyboard commands I had done while in the app show up in the console.

Side note I am running retrogame ( https://learn.adafruit.com/retro-gaming-with-raspberry-pi/adding-controls-hardware?view=all ) because I was trying to add hardware buttons to do some functions. Those functions do work I was able to test in the console. I tried disabling retrogame and it had no effect.

Any ideas? I thought maybe I'm missing a line or something in the input section of config.ini