Daisy chain 74HC595 causes issues

Paul,

Thanks for your input.

I have fed in 3.3V to power the SRs and its working fine.

It's the output of 7805.

Is this a formal level shifter or a 'NOT gate' used for buffering?

Is it safe to conclude that the problem was with the difference in input voltage standards at Vin of shift registers (5V) and clk.data signals (3.3V)?