Touch ID M1 Not waking MacBook Air

When M1 MacBook Air goes to sleep (and/or screensaver is active), I used to be able to just "rest" my finger on Touch ID (i.e. not click button), and it would just wake up/log in automatically (i.e. Touch ID was waiting for a finger print). It no longer does this - I have to press a key/use touch pad in order for Touch ID to work. Is there something wrong? a setting I can change? It is quite annoying.