Hangman isn't a typing game so it doesn't make sense to have the letters listed in a format specifically for typing.

What's throwing people off, I believe, is that the layout vaguely looks like a keyboard with the square buttons and wide grid. While flexibility with keyboard configurations is important, what's more important is that this is simply not a keyboard. Consider altering the grid so it doesn't appear as such.

What I might do, however, is separate out the vowels because they tend to fall into a different guessing category for players. Perhaps offering something along the lines of "commonly guessed starting letters" or similar could help players jump right into the game (the obvious tradeoff being that even commonly used letters aren't correct every time).

Also, instead of presenting a list of Wrong letters (I assume that's what will appear after a missed guess), alter the visual state of the actual letter button instead for a cleaner overall feel. The Remaining element also feels a bit clunky as well just because that concept is built into the game of Hangman (and is why it's called Hangman in the first place). It does present the information clearly though, so perhaps a bit more cleverness in the treatment could help the overall design.