PsysTechSoft PTS-DOS 32 and V Communications DOS98 shell interpreters show the exact same anomalies:
CTTY CON (or whatever other char device)
Invalid device
CLS
Changes the font color to blue.
Since both shells are totally unrelated and behave well with their own original kernels, I can only assume that the EDR-DOS kernel is failing to do something that it should be expected to do.
I am attaching a bootable floppy image that has the EDR-DOS kernel and a startup menu that will allow you to switch between the two shells mentioned above, so that you may reproduce the issues.
twoshells.zip