The Touch ID on my "Magic Keyboard" is suddenly not recognized
I have an iMac (24-inch, M1, 2021) and a Magic Keyboard with Touch ID. It was working great for a couple months, and then this week a software issue has broken the Touch ID feature. I just upgraded to the latest macOS (12.2.1), but I believe the issue started just before the upgrade.
I say it's a software issue because it won't even try to set up Touch ID anymore – it's like it thinks the device isn't capable. Please see this screenshot of the System Preferences pane for Touch ID:
I have shut down, restarted, and tried an SMC reset by shutting down and unplugging the power for 15 seconds. Still no luck.
Googling for "Unable to set up touch id on your keyboard" produces no exact results at this time, so my guess is that this is a newish issue.
How to fix?
iMac Line (2012 and Later)