Hi Bill,
I thought you would have already changed the batteries, but like I said, it's better to check than go through loads of fixes and find out it's just the batteries. It's happened :D
As soon as I heard docking station I thought ha ha!! Then when you said you have plugged it into the laptop directly, and it made no difference, then my hopes drained. Docking stations are notorious for causing these types of errors. Hence my initial suspicion that it could be this, but if it still happens when plugging in the dongle directly to the laptop, then this is not the cause.
However, having too many USB devices plugged into your laptop might cause an issue, but you'd have to check and try and eliminate USB devices through trial and error if this is the cause.
The only thing I can really find about the Mouse and Keyboard Center is this "The Microsoft Mouse and Keyboard Center app allows you to customize how your devices work and it installs essential drivers for them"
I think you have to open the Mouse and Keyboard Center and then configure your keyboard within the program.
I don't know at what point the driver is installed, but it is meant to be a unified driver so I presume it would install with the program and then apply this driver once you have setup your device within the program. Have you setup you keyboard with the program?
I normally reboot as a matter of course when installing Apps or hardware, just to make sure any drivers are installed properly.
After doing this, you could always check Device Manager and see if there are any Driver updates, just in case the driver wasn't installed with the program.
Let me know how you get on and if your issue has resolved.
Kindest regards,
Neil