The symptoms descibed indicate that Karen is most likely to have schizophrenia.
Schizophrenia is a mental disorder which is characterized by the lack of understanding reality. There are no specific parameters to have a precise diagnose - the symptoms are various and different from person to person - but there are common factors, as the ones listed above in Karen's case, and others include anxiety, lack of motivation, false beliefs, depression, and abnormal social behaviours.