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Hi @jake30,
Try clearing data for the Camera app, Settings > Apps > All > Camera > Clear data, restart your phone and test it again.
No pictures will be deleted when you clear data for the Camera app.
Do the camera key work if you test it in Diagnostics (Settings > About phone > Diagnostics)?
That is strange. Would you mind testing another camera app, Google Camera for example, and see if you can use the camera key to take a picture then or not?
No worries!
What if you test the normal camera app in safe mode, do the camera button work then?