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I had the exact problem but discovered that by holding down the FN key the space bar, 1, and 2 keys worked. On a whim, I removed Toshiba Function Key from programs, downloaded the latest version from Toshiba and installed it. All keys work fine now including the mute function key which also did not work.
Perhaps the keyboard language changed when you updated the OS. Go to the keyboard icon in Control Panel to check the language setting.