Touch ID broken on iPad Air 5

Hey everyone so my iPad was working fully fine and then a couple days ago I noticed that my Touch ID wasn’t working. I thought it was my oily hands or something else. When I went to check the Touch ID was cracked and shattered. I didn’t drop my iPad anywhere and it always has a case on it from Amazon so I have no clue how this could have happened. I took it to apple and everyone was baffled too and never seen the issue before. My question is has anyone seen this before on any of the newer iPads? And it could it be a hardware issue or something wrong with the pressure. I have applecare plus on it so I’ll just get a new iPad but it’s so bizarre. Any thoughts. Thank you