It's Ventura 13.5 with Windows 11 Home Version 22H2 Build 22621.2134.

However, it's now working! Your post triggered a "aha" moment. You mentioned the USB device and as I was poking around there it says that you must shut the virtual machine down to add a USB device. It was then that I realised I hadn't actually been shutting the VM down, only suspending it, in order to see if that would fix the problem. 

So, after shutting it down completely and restarting, the keyboard is now working again. 

Thanks for your help!