1. Spaces look like commas , hence the funny boot screen.
2. Number keys generate lowercase letters instead of numbers
3. Special characters are incorrect.
4. Basic does work. I can type PRINT "HELLO WORLD" and it prints HELLO WORLD as it should.
5. Shift doesn't seem to have an effect on the case of most characters typed out.
Fortunately someone on a Facebook group mentioned a "lowercase" mod for the TRS-80. Turns out it is not compatible with Level II BASIC. It was quite a lot of work to remove this mod from the computer. Several jumpers had to be removed and several cut traces had to be found and repaired. It took about a dozen tries before I completely removed the modification.