Touch ID doesn't work sometimes even though Login says both password and Touch ID are accepted

Once in a while, my M1 MacBook Pro will stop accepting my fingerprint on one account even though my other account continues accepting it. Moreover, once I login, the fingerprint gets recognized by the Safari password manager for filling in passwords for website. Here is the scenario

Account 1:

Goes into screensaver.

I try to login.

Screen tells me that I can use my password or Touch ID.

There is no indication on my Touch Bar that I can use the Touch ID.

I use Safari to login to a site. Touch Bar works while filling in username and password.

Once account 1 is in this situation, it will not let me login using Touch ID.

Account 2:

No problems.

I can keep switching back and forth between the two accounts, and Account 1 will have problems, and Account 2: will never have problems.

Any idea what is going on?

My only guess is that it could be a screensaver issue.