Hello BillOz69,
We understand you're having an issue with Touch ID since installing the new macOS Sonoma and we'd like to help with that.
First, let's test this in safe mode, a step which may resolve the issue if it is related to the startup items, but if it does not, it will help us greatly isolate the cause. Safe mode will tell us if the issue is related to a startup item, third party plugins, caches, fonts.
Once inside safe mode, log in to your account and check if the issue is also occurring or not. Use this article for the steps to get into safe mode: How to use safe mode on your Mac
If everything is working properly in safe mode, but then is not working after you restart the Mac, please check the section titled "If an issue doesn't happen in safe mode" for the next troubleshooting steps.
If the issue is also happening in safe mode, you will need to see if this problem occurs in a new test administrator account on your Mac. A test user will let us know if the issue is isolated to your account, or system wide.
Change Users & Groups settings on Mac
If the issue is being experienced in the test user also, then please check the section titled "If the issue happens in the other account".
Let us know if you have any questions.
Have a great day!