My first question would normally be: Does it happen regardless of what user is logged in? But since you factory wiped it, I would assume that is not relevant. (but it's still something to consider)

My second question would be: Do you have a config profile going to this machine that could be causing this behavior?

Third question: when you press the caps lock key and type, does it actually type in all caps or does it not function at all?

question #4: Have you tried zapping the PRAM (or reset PMU/SMC/whatever Apple is calling it this year)? I've seen that fix purely hardware related issues like the Caps Lock light.

EDIT: the light doesn't work on ANY keyboard? built-in, bluetooth, or USB? See questions #2 and 4

1.My first question would normally be: Does it happen regardless of what user is logged in? Only my account which is a local admin

My second question would be: Do you have a config profile going to this machine that could be causing this behavior? Not that I know of

Third question: when you press the caps lock key and type, does it actually type in all caps or does it not function at all? Yes it does work just no light

question #4: Have you tried zapping the PRAM (or reset PMU/SMC/whatever Apple is calling it this year)? I've seen that fix purely hardware related issues like the Caps Lock light. Yes didn't seem to do anything.

EDIT: the light doesn't work on ANY keyboard? built-in, bluetooth, or USB? See questions #2 and 4 Doesn't work on any keyboard

If you factory wiped it but the problem is still localized to your account and no others, I can presume you are restoring your files from a backup and the problem keeps following you. If your account is the only one that's affected and all other accounts are fine, then it has to be something in your ~/Library/Preferences/ You may want to look at anything relating to keyboards like com.apple.HIToolbox.plist or any logitech driver files (if present) Move that file out to your desktop, then logout and login again. See if it helps.

I only restored my Desktop, Docs, Pictures, etc via OneDrive sync

I have found the issue Karabiner-Elements is causing the issue. When the app is closed everything works fine.