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Weirdly enough, I have two MBPs (one work, one personal) both on 10.15.5 with the same configuration and one works and one doesn't.
The one that works is a 16" MBP, the one that doesn't is an older 13" TB
Bumping to the latest beta (12.9.6) fixed it on the machine that wasn't working.
I worked for me after uninstall and install Karabiner 12.9.
Turns out it was a security flag that was setup to not allow Kext, been reverted and it's now working fine. Closing ticket!
Most helpful comment
Bumping to the latest beta (12.9.6) fixed it on the machine that wasn't working.