I believe I finally solved the problem of, at least, my own touch-id problems.
I tried to re-install Big Sur a few times but it did not resolve the problem. However each time that I completely wiped my HD I could set touch-id up and it would keep working. But the problems came back as soon as I used Migration Assistant.
This led me to believe that some settings etc. that I could not skip from migration, were each time taken from my old MacBook Pro. That did not run Big Sur and was an Intel without T2 chip. Since Big Sur many security settings had changed and on a MacBook Pro M1 there are even security differences in the hardware.
But what went wrong I wondered. Then on this Apple support Forum some users told that their problems went away after deleting Little Snitch. And these problems even stayed away after re-installation of this FireWall module.
When I first set up the M1 computer I was struck by the fact that the FireWall was disabled by default. I thought of that as a serious fault on Apple's side. But now I thought that this might have been on purpose. Maybe my own firewall was blocking the use of touch-id. Or maybe some settings of my old laptop were imported into the settings of my new one and caused a conflict. Or maybe some apps that originally had full disc access on my old computer, could obstruct security settings on my new one.
So I went to the security and privacy panel in the system settings. I first removed all app's that had full disc acces, I had already disabled them but now I removed them from the list until the list was blank. Then I went to the firewall and disabled it. Then I deleted all my fingerprints.
I closed the system settings and with my cursor I restarted the computer.
After initial start-up the laptop stalled and a program called Recovery Assistant came up. And it started to recover the security settings. I did not do anything it started by itself I have never heard of this app before.
After restoration of the security settings, the app disappeared and the M1 started up as normal.
This morning my touch-id is still working as normal and I am pretty sure that it will keep working. I have enabled the FireWall after giving in new finger prints yesterday. But I did not enable Stealth mode.
