I don't know what could be the keyboard issue. I've never had anyone report a bug like that. Which system are you playing it in?
I also don't know what could have happened about the commands. Sorry.
For Chapter 1 you need (side quests not included):
-Talk to Mariah at home.
- Exit the town to the north.
- Save Emily and continue right to the forest.
- Recruit Grace and find 3 tree logs for her to practice in the forest (optional, but makes the boss much easier).
- Collect 3 blue mushroom in the forest (optional)
-Beat the boss in the forest.
- Head to the shack outside the town 's wall at night (follow the pumpkins).
- Watch the cutscene in the shack.
- Head back home and talk to Mariah. Watch the cutscenes and chapter 1 is done.