I had checked the chip carefully when I inserted it, but verified with a continuity tester that pins are not shorted.
Instead, it was the expected solder bridge between two diode pins. Completely undetectable on the stereo microscope as I very carefully inspected everything.
I used a continuity tester to find the diode connected to the switches causing the misread, as well as the switch to the left that was activated in error with the misbehaving switch. Indeed, the two very close pins between the two diodes had electrical connection, even if I couldn't see it. I did correct the issue and the switches work just fine now.
Installing the power keyswitch option next.