A: No. (If that were the case, the card would say so.)
Thematically, it actually works quite well, sometimes BETTER if the Keeper is Evil. I think if you were using the Dark Side of the Unseen Force you’d be even more likely to mess with people’s heads. If you were a Bad Guy Space Captain it would totally be in character for you to shanghai other people’s Crew Members. And just because you’re an Evil Engineer doesn’t mean you can’t fix that Malfunctioning Robot – I mean, it might be your Killer Death Robot! You could be an Evil Doctor seeking to eradicate the peaceful Brain Parasite species. See, it totally works.
Evil also occurs in Fantasy Fluxx, where it is the only Attaching Creeper. Again, there’s no reason why it should cause anything to not work. The Magic Wand still turns any non-magical being into a Spellcaster, whether Evil is attached to the Person or the Wand, it makes no difference. There really aren’t any thematic reasons it should impair the Keeper either: there are plenty of Evil Spellcasters in the literature, evil Magic Rings (the most famous one does, in fact, turn one invisible, no less!) Evil Dragons, Evil Pirates, and so forth. Sadly, Evil is versatile, and seems to “work” with everything…