I have faced exactly same issue. I had updated my iPhone 13 Pro Max to iOS 17 couple of days back, and then to security update version of 17.0.1 this morning. Ever since the upgrade, I am getting "SIM Failure" error prompt.
I have performed following troubleshooting, to no avail :
- Toggling to Airplane mode
- Restart phone
- Reseat the SIM card tray after wiping SIM card with a clean cloth
- Reset Network settings
At last I attempted to try my SIM card in another phone, and the SIM is not being recognised on the other phone too. It seems the update somehow intrusively fiddled with the SIM card, as things were working smoothly before the update.
It is bizarre, as I had this SIM card on international roaming, and now I would need to wait to revisit my country whenever in future, before I can get a replacement SIM card from carrier.