2019 16" MacBook Pro "Failed to complete Touch ID enrollment"

When trying to setup the fingerprint ID I get this "Failed to complete Touch ID enrollment" but the message is displayed before the fingerprint scan. Also the Touch ID key seems to have no function at all just a dead key. The space bar seems to be Ok though.

This started while running Monterey and after I wiped clean the internal drive prior to selling this laptop. When Touch ID would not allow me to scan a fingerprint I installed Ventura but still not working.

I tried to reset SMC but can't do that if I follow the procedure of holding down the power/Touch ID key because it does not work for anything.

Hopefully theres a fix.