Unlocking with fingerprint

I have an update. I talked with Apple Support. They suggested booting from Safe Mode. Unlocking with Touch ID was working. They also asked if I had any VPNs installed, so I uninstalled the Cisco Anyconnect VPN and restarted. Touch ID started working when unlocking my macbook.

DJDesrosiers,

Thanks for getting back to us.

Have you tried resetting the SMC? How to reset the SMC of your Mac.

If that doesn't resolve the issue, try isolating further by testing inside a new Admin User account on your Mac: Set up users, guests, and groups on Mac.

Let us know how it goes.

Cheers,

Hi DJDesrosiers,

Thanks for coming to Apple Support Communities for help today with your Mac and Touch ID. It sounds like it doesn't always work for you.

Check out: Use Touch ID on Mac

"Use Touch ID to unlock your Mac, log in, or switch users

To use Touch ID for these tasks, you must have logged in to your Mac already by entering your password.

• Unlock your Mac and some password-protected items: When you wake your Mac from sleep, or open a password-protected item, just place your finger on Touch ID when asked.
• Log in from the login window: Click your name in the login window, then place your finger on Touch ID.
• Only user accounts that have passwords can be unlocked with Touch ID. Share-only users and guest accounts cannot use Touch ID.
• Switch users: Click the fast user switching menu  in the menu bar, choose a different user, then place your finger on Touch ID.

To use Touch ID to switch to another user, you need to have set up fast user switching, and the user you switch to must have logged in to the Mac already by entering a password."

And also:

"If you have problems with Touch ID

• If Touch ID doesn’t recognize your fingerprint: Make sure your finger is clean and dry, then try again. Moisture, lotions, cuts, or dry skin can affect fingerprint recognition.
• If you still have to enter your password: For security, you need to enter your password when you start your Mac. Sometimes you need to enter your password to continue using Touch ID. For example, users must re-enter their password every 48 hours and after five incorrect fingerprint attempts."

Have a fantastic day!

I have this problem too after upgrading to 11.2.3 yesterday on my Macbook Pro (16-inch, 2019).

Edit: Resetting SMC did not work for me. When I try to login, the touch bar does not indicate with text and an arrow to use Touch ID. However, this all works when unlocking Security & Privacy in settings. I can also delete and re-add my fingerprint.