Home button and passcode not communicating

I have a 2020 iphone SE and have just updated to iOS 17.4.1. My home button has been broken for ages so I have been using the floating button. Before the update, when accessing sensitive information, the thumb id option would appear on the screen and then change to the passcode option, but now the thumb id option appears for not even 1 second and then disappears back to the original screen with no option to enter the passcode. I have gone into all the settings I can think of and have even tried to access the passwords but anything that contains sensitive information, this happens.

Any suggestions would be greatly appreciated!

Thank you :)