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The same variation/skin can only be used once to unlock new characters, so Khar A (the first variation) would unlock Khar B, then Khar B would unlock Khar C, and Khar C would unlock Khar D. If you have all variations of a certain character already, then you need to use another character to unlock more - for example have Roho A open the chest, if you don't have other Roho variations yet.
The White Knight and the Black Knight are special cases and don't unlock new characters, but opening the chest with the Knights is required for unlocking a secret.
Hmm, that's weird. Sounds like the game must have bugged out somehow, it should have unlocked Khar B for you instead of items. If something similar happens again, try verifying the game files. You can do it by right clicking Has-Been Heroes in your Steam library and go to Properties > Local Files > Verify Integrity of Game Files.
Oh right, my bad. I've notified about QA team about this and we'll keep an eye out in case we get more reports about it. Hopefully it won't happen again and you'll be able to unlock the rest of the characters without issue.