I did the Howling Stones key quest yesterday, and when I went into Howling Stones it said that the key was added to my key ring. But I still physically had the key and placed it back into my bags. However, when I logged back on a fews hour later to try and transfer it to my other character, I realized that the key was no where to be found? I checked my bag and banks multiple times because I felt like I was going crazy, but I'm assuming that perhaps the keys simply disappear now after you've used them..?
Yes. Keys that go to the (new) keyring are meant to *poof* (although there are exceptions) has to do with this update: https://forums.daybreakgames.com/eq/index.php?threads/game-update-notes-december-7-2021.279403/
An activated key that has gone onto the new achievement keyring cannot be transfered as it does poof when you grab it. So you would have to do the transfer with a PC that has not activated the key.
The character that activated the key will forever be able to unlock the door, without the physical key. It is probably only a problem if you want to "flag" multiple chars with a single key.