I have just downloaded the application and I'm still exploring it.
TL;DR The Prevent keypresses from reaching application box in the hotkeys settings is NOT WORKING because it STILL REACHES the other applications.
I came across an option wherein you can assign hotkeys for the timer or stopwatch.
I tried assigning:
spacebar as my "Stop/Play" button,
enter as "Snap",
and shift+enter as my "Reset" button.
After doing so, I minimized the application and kept it running on the background because I have to type something, and while I was doing that, I have noticed that I was not able to use spacebar, enter, nor shift+enter for its original function(?) like, using spacebar to create a space, etc.
I have also noticed that the buttons that were not working are the hotkeys that I used on the XNote Stopwatch application so I tried exiting the app.
When I tried typing again, it worked.
Another thing that I observed is that even if the application is minimized, whenever I press the hotkeys, the XNote Stopwatch is till able to reach the hotkeys or "keypresses" (the Stop/Play, Snap, and Reset buttons are triggered whenever I press their respective hotkeys) and maybe that's the reason why I can't use space, enter, and shift+enter.
And lastly, even though the Prevent keypresses from reaching applications box is checked, the bug still occurs.
I tried unchecking the box and I was relieved but surprised at the same time because the buttons worked (in a way that I can finally use spacebar again when typing) BUT I was kinda expecting that the hotkeys are still able to reach the other application.
All that I can think is that the Prevent keypresses from reaching applications box is NOT WORKING at all :/ because it STILL REACHES the other applications.
If what I have observed is a bug, I hope it get's fixed soon.
As of now, I removed the hotkeys so that it won't get in the way of my work.
I'm glad and thankful for taking your time to read my awfully long, um, concern:)