Help, longstanding problem with bluetooth keyboards

You might bring this up to Apple accessibility, but I don't think there's anything you can do to change it, Sabrina. The keyboard still thinks the VO is the capslock key. The capslock function is probably being handled on the bluetooth keyboard end and not the iPad side. There's nothing you can do to reprogram the keyboard.
My only suggestion is to train yourself to hit* the VO key a second time after a short pause to turn capslock off after you use it.
* I checked again. All you have to do is press the capslock key once to make the keyboard think you turned it off. Double tap quickly to make the iPad think capslock is on or off. It's the keyboard doing this, not the IOS software.

That would work fine, and you could probably press both of those keys at the same time with one finger.
I would just turn off the caps lock as VO in settings and not bother with it, but my left option key doesn't work on my portable keyboard.