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I remapped my CapsLock to Escape in System Preferences, but it doesn't work.
I had to install Karabiner and remap it using that.
Is there a way to just remap CapsLock using just the settings without installing a third party software?
This isn't reproducible, it seems to work just fine.
I was experiencing this too and found a simple solution.
If you're using an external keyboard, make sure to select it from the keyboard dropdown in the modifiers menu.