unable to add fingerprint in Macbook Pro 16" macOS Big Sur

I just bought 16" MacBook Pro last Dec 2020 and I remember having been able to set up my fingerprint. But I was not able to use that feature at all.

• went ahead and deleted the onIy registered fingerprint on my device (thinking I may have messed it up) and planned to add a new one.
• followed guide on how to start ---> System Preference - Touch ID.

1. 1. clicked the "+" inside a circle that has 'Add Fingerprint' from below.
   2. then I was prompted to enter password to add a fingerprint.
   3. after accepting password, I am back to the "+" icon but every time I click on that, it's not proceeding to start the set up. Actually, nothing is happening.

I later then realized that the first few times that I was able to unlock my laptop was not because of Touch ID but because I was wearing my Apple Watch. I also noticed I am not seeing the "Touch ID" from the panel. I saw some posts and videos online and I never saw that appeared here.

Appreciate all the help I can get from you guys! this is my first time using MacBook :)