Fingerprint recognition

Since iPadOS 17 first came out, I have noticed that for some reason, in some apps, such as my bank's app, the fingerprint fail screen appears momentarily - as can be seen in the enclosed screenshot for which I had to record a screen video to. As I mentioned, this does not only happen in my bank's app but other apps as well but it was less problematic to log into my bank's app than buy something in the App Store.

It's not exactly life-threatening I know but it is annoyingly imperfect and I had hoped that this might be corrected in an update but it's still there.

Is this a software problem or is the fingerprint hardware faulty?