Something is seriously wrong if you can take out the key from ignition with tranny in "D" or drive. There's a whole bunch of locks and things to prevent that. Big safety feature that's been in existence for decades before 1997.
Now, if tranny were in neutral, then it might be possible.
So either something is messed up with the tranny, or the ignition is messed up. Or rather, some locking parts to either of them are bad, not necessarily the actual tranny or ignition.
If you actually can remove key from ignition with tranny in Drive, then I'd be very cautious and seriously warned about driving car. Something might be dangerously compromised in the vehicle.
Very older cars, like from the 60's and before were able to do that. That's why they eventually put the locking mechanisms in place to prevent it, so that you HAD to place tranny into park to remove key, that way the car is secure from rolling.
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On a 1997 Toyota Avalon, should you be able to remove the key from the ignition while still...
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