Sleep keyboard shortcut doesn't work on M2 w/touchid

Hello jacob_h82,

Are you using FileVault on the Mac? That would prevent you from being able to use automatic login: How to log in automatically to a Mac user acccount

If the setting is dimmed or unavailable

If the automatic login setting is dimmed or doesn't show the account name, then manual login is required. For example, manual login is required in these circumstances:

- FileVault is turned on. 

- Your Mac is supervised by your organization, using a profile that prohibits automatic login.

- The account is set up to use an iCloud password to log in. In that case, you might also see the message “A user with an encrypted home folder can't log in automatically.” Learn how to change the login password.

Have you used hot corners to achieve putting the computer to sleep in the past? That would be a possibility and it wouldn't require you to use a shortcut of any kind. Learn how here: Use hot corners on Mac - Apple Support

Use hot corners on Mac

You can use the corners of the screen as hot corners, to quickly start actions when you move the pointer to a corner. For example, you can start the screen saver when you move the pointer to the top-left corner of the screen, or lock the screen when you move the pointer to the top-right corner.

Tip: By default, the bottom-right hot corner is set to Quick Note, so you can quickly open a note to jot down your thoughts at any time. See Start a Quick Note.

1. On your Mac, choose Apple menu  > System Settings, then click Desktop & Dock  in the sidebar. (You may need to scroll down.)

2. Click Hot Corners on the right.

3. For each corner you want to use, click the pop-up menu, then choose an option, such as Notification Center, Launchpad, or Lock Screen.

To use a modifier key with the hot corner, press and hold the Command, Shift, Option, or Control key, or a combination of these keys, while viewing the pop-up menus.

4. Click Done.

Let us know if that helps out, take care.