In my 86 Hilux I can take the key out while driving or whenever. I love that feature! This started at about 200,000 miles. It was especially useful when I lived in Minnesota. I could leave my truck running, and lock it, while I let it warm up.
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Totally 100% agree with the parking brake. I have always used the parking brake since I took home the LC from the dealer in 1995. Just happened this one time..... However, parking brake or not, it is time to find the root cause of the problem/condition and correct immediately.
I'm hearing from other Toyota owners that are experiencing the same condition regardless of year/make/model of their Toyota product. Some have found worn tumblers, others have found fuses. In my case so far, all fuses are good. I will have time this coming weekend to dig in deeper and see what the problem really is. I plan to document with pictures as well.
Thanks to everyone who has commented.