Happens to me too. I've been experiencing problems with FaceID ever since I updated to iOS 17.
To make things worse, once I've installed 17.0.2 a whole set of much graver problems started to appear; my iPhone (12 Pro) would randomly initiate a restart, but will stay stuck in a loop and never reach the lock screen again (it just blinks the apple logo on and off). At that point, the only option I discovered I had is to connect it to my Mac and "Update" it. And here's the fun part: This also doesn't work if I try to do it immediately, I need to let the iPhone stay "bricked" for a good couple of hours before I can successfully update it using my Mac and regain access to it.
I noticed that the random restarts happen sometime after "Face ID" fails working and I get the error messages described by @sajam.
ps: ..the icing on the cake: the iPhone bricked when I was abroad, so no access to credit cards, boarding passes etc. Thank you apple!