One of the things you need to keep in mind is when you're using this is that you're back in 1975. It was usually assumed you were using a teletype or other paper terminal.
So the bell (CTRL-G) was a literal metal bell on the terminal, not a speaker in the computer. Backspace didn't exist, instead a rubout character was used. In the case of 4k/16k Microsoft basic, that was an underscore. So typing "liss_t" was just like typing "list" to the computer. Some applications, like CP/M or Altair Disk BASIC use the backspace character as you're used to.
I don't know why CTRL-C is not working, I just tried it and it works in both 4k basic and 16k basic when using the keyboard/VGA monitor.