Here's the problem:

kbdclass.sys file is corrupt. I cannot delete/rename/add/change it
because Windows gives me an error that the file is corrupt.

I've tried safe mode - no good, obviously, because windows uses that
file in Safe mode too.

Is my only option to use the Recovery Console?

You could remove the hard drive, & put it into another computer. Then
remove the file, & replace it.

Or, boot up to another os, since that file will load into memory from
the (floppy or cd rom) disk, you again, can remove & replace it.