Can you try with a recent restic version? I wonder whether there’s just a problem with restic communicating with B2. When did you last access the repository successfully?
What does that (downloading the repo) even mean in this context, where the whole point is to have a remote repository? Plus it is 1.6TB, thus not easily downloadable.
You can download your keyfile and build the SHA-256 checksum of it.
Is the result different to the filename, then your keyfile is somehow damaged. A broken keyfile has the same effect like forgetting the password.
Do you have more than one keyfile or a backup/copy of your keyfile?
For an initial test it should be enough to download the keys folder and the config file. If I remember correctly the restic doesn’t access other parts of the repository before having the proper key to access it.
In fact, very strange. Sad that we will never find out what went wrong.
I mean, imagine this would happen in a Desaster Situation. Might increase pulse rate a bit