I also am having the same problem - I am using AutoCAD lt 2014 - and recently changed my system to Windows 7. I now find that the esc key does not cancel commends - I would be very grateful for any help anyone can give - it really disrupts work.
Joyce
You can try re-mapping the ESC key with the clear macro. I believe it's ^C? There's multiple possibilities to this problem. Another program, registry error, CUI error..etc.
My suggestions would be the following:
Remap the key>Turn off/disable 1 program at a time and retry the key>re-install.
If re-installing the softare doesn't fix it, then it's most likely another program causing the problem. I've had this problem once before but it's been a couple of years ago and I've re-installed since then. But my first instinct was to tell you it's another program.
If you reinstall, be sure to restart your computer between the uninstallation and the reinstallation.
Sorry for the vague response, but hope it helps.
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