Hello, and welcome to Just Answer. Please allow me to assist you.
The normal way that Toyota defeats the interior release is positioning the key cylinder. Look at the trunk lock, where the key fits in. Is the keyway vertical, or is it horizontal? If the keyway is horizontal, the interior latch mechanism has been defeated. Insert the key, and turn the keyway until it is vertical, and try the inside release again.
I think that this will get you fixed up.
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Have you verified that the wire is physically moving, at the truck lock, when the release handle is puled? The handle will pull the wire, in either position of the key. One way, the wire is allowed to pull the latch release, the other way, the latch is defeated.
In any case, if the wires is not moving at all, when the release lever is pulled, the wire may be broken. Or, the wire is not in the specific place that it needs to be in, on the latch. There is not much to this system.
If you locate where the wire/ball hooks onto, and you manually trip the latch closed, you should be able to release the lock via the lever that the wire from the inner release moves. If it does not release it, and you have to use the key, the latch is bad.
Sorry, the adjustment is under the 'carpeted' portion of the trunk lid.
There is no adjustment provided to the cable, on the release lever next to the seat.
Of you move the padding away from the latch, under the trunk lid, you will see where the release cable comes across the trunk lid.. On the latch, the cable is held in place, via an interference fit, and the center wire continues to the release portion of the latch. I am thinking that your main cable is not attached where it goes on the latch assembly.