macOS touchid password not syncing

For work I have a 2016 MacBookPro running macOS Monterey. Our IT Security has piled on a bunch of stuff and, as a result, changing the password is an ordeal that I have to do every 3 months. The last time was last week and the pw to activate Touch ID did not sync.

At startup I enter the new pw. A few seconds later my user picture comes up with the password field and a message saying I need to enter my pw to activate Touch ID. The new pw doesn't work but the old pw does.

I tried unchecking all the boxes in the Touch ID System Preferences and restarted. The same thing happened asking me for the old pw. It's odd that there's no option to choose not to activate Touch ID.

I tried looking in Keychain Access hoping I'd find it there to update it. But I had no luck.

Does anyone have an idea how get it to sync with the new pw?

Thanks!