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Hi,
The Caps Lock indicator light no longer works on Surface Laptop 7 ARM, Windows version 24H2 since a recent windows update. I have spoked to multiple Microsoft support team members and there doesn't seem to be any urgency in resolving this. There are multiple reports of other users across the Microsoft feedback app and Reddit experiencing the same issue and it is becoming quite frustrating. The light still work when in BIOS highlighting that it isn't a hardware issue rather a software issue.
I've been following similar reports on Answers and Reddit. There was ONE report 2 days ago on Reddit that an update solved the problem https://www.reddit.com/r/Surface/comments/1kjqfuy/caps_lock_key_indicator_light_not_working/ - can you run WINVER and reply with the version of Windows and also supply a link to your Feedback Hub report on this? Did your report get a response like the one shown in that Reddit thread?