I'm afraid you've stumbled upon a known issue. When debugger is undocked, keyboard input is not correctly recognized. I'm happy to tell you that we have identified the problem. It should be fixed in our next release that is due in the weeks to follow.
As far as the simulator docking option is concerned, we've added it to the backlog and will implement it in some of our next releases.
Thanks for giving us your feedback. We appreciate it.
the Telerik team
Share feedback and vote for features on our Feedback Portal.
Want some Kendo UI online training - head over to Pluralsight.