finally managed to pin down the in game UI and control issues for keyboard

addons/maaacks_game_template/base/scenes/overlaid_menu/menus/pause_menu.gd

@@ -103,3 +103,5 @@ func _on_confirm_main_menu_confirmed() -> void:
 
 func _on_confirm_exit_confirmed() -> void:
 	get_tree().quit()
+	
+	

addons/maaacks_game_template/base/scenes/overlaid_menu/overlaid_menu.gd

@@ -34,6 +34,7 @@ func _handle_cancel_input() -> void:
 	close()
 
 func _unhandled_input(event : InputEvent) -> void:
+	return
 	if event.is_action_pressed("ui_cancel"):
 		_handle_cancel_input()
 		get_viewport().set_input_as_handled()