I first used KeyScrambler over 10 years ago and liked it despite it crashing fairly regularly, further development brought a much more stable product. I think your report is a very fair summary of the product.
I stopped using it a couple of years ago, it clashed with other security software (sorry, can't remember what). I installed it onto the PC I'm using now about 2 months ago, I was impressed with how stable it seemed. This thread reminded me to check the taskbar for its icon, its not there (a new incognito mode?!). Its not showing in Process Lasso or Task Manager other than in the 'Start Up' list. Trying to run it as Administrator brings up a window stating that it is already running and then asks if I want to close the current instance, I click yes and go round in the same circle. I haven't got time to check it out more fully at the moment, if I find anything more later I'll feedback. I still like KeyScrambler though.