Why "OS X Utilities" is showing instead of "macOS Utilities" whenever I perform recovery mode
I can guess what's happening, but not how to fix it, short of physically disconnecting the keyboard.
The startup commands are…

 Cmd ⌘  R
reinstall the latest macOS that was installed on your Mac, without upgrading to a later version

This first one is in fact loading from your existing recovery partition.
These next two go online for Internet Recovery

 Opt ⌥   Cmd ⌘  R
upgrade to the latest macOS that is compatible with your Mac
 Shift ⇧   Opt ⌥   Cmd ⌘  R
reinstall the macOS that came with your Mac, or the version nearest to it that is still available.

Pressing  Opt ⌥   Cmd ⌘  R for the latest OS is adding your stuck shift key (because Karabiner isn't loaded yet to prevent it), meaning you get  Shift ⇧   Opt ⌥   Cmd ⌘  R  which is trying to install a version of the OS (presumably 10.10) too old to read your APFS drive.
I can only guess that  Shift ⇧   Cmd ⌘  R is not being recognised as anything at all.