MacBook Air M1 Finger Print reader works but only when the air is on an angle

OK, here is a strange one. Recently, the finger print reader on my MacBook Air seemed to have stopped working. It just wasn't responding to placing my finger over the sensor. I made sure updates were applied, restarted the MacBook, tried re-adding the finger print. Nothing seems to restore functionality (even trying to re-add the finger print would not work in settings).

Almost by accident, I discovered that if I tilt the MacBook to where the back of the MacBook is about an inch or two elevated, the finger print scanner works flawlessly. I was even able to add several fingerprints this way.

I'm still experiencing an non-functioning fingerprint reader when the MacBook is laid flat but as soon as I tilt it up, it works.

Has anyone ever experienced this before? Any ideas or suggestions on what might be going on?