As described, your TouchID sensor may be faulty or has been disabled.
Have you recently has your iPad screen replaced? If yes, this would explain the problem - as the TouchID sensor will have been disabled if a non-OEM screen has been used, or if the screen was replaced by anyone other than an Apple Authorised Service Provider (AASP).
Otherwise, you would be best advised to seek assistance directly from Apple Support - and request a remote diagnostic test. You can contact the Support Team using the Support link at top-right or bottom-left of this page.
Alternatively, you can initiate and manage your support cases from Apple devices using the excellent Apple Support App. If not already installed, the App can be downloaded from the App Store:
https://apps.apple.com/app/apple-support/id1130498044
You might also visit the Genius Bar at your local Apple Store or Apple Authorised Service Provider (AASP) - where the technicians will be able to test and assess your iPad:
Genius Bar Reservation and Apple Support Options - Apple