New Magic Keyboard with TouchID not working

I am not sure if there is anything wrong with the keyboard.

Did you try to set up touch id?

Go to System Settings->Touch ID & Password, click "Add Fingerprint" and configure it. Does it not work?

Concerning function keys: make sure that "use F1, F2 etc. as standard function keys" is NOT enabled in

System Settings->Keyboard->Keyboard Shortcuts->Function Keys

The new USB-C accessories require macOS Sequoia 15.1 to work properly, and as noted on the MacRumors forums, earlier versions of macOS do not work. There are reports from users running macOS Sonoma and Ventura who are having issues with the new devices.

https://www.macrumors.com/2024/10/31/apple-usb-c-accessories-macos-sequoia/#:~:text=The%20new%20USB%2DC%20accessories,issues%20with%20the%20new%20devices.

The new Magic Keyboard with Touch ID and Numeric Keypad for Mac models with Apple silicon (USB–C)

To get the Full Functionality would require upGrading to macOS 15 Sequoia

jdc_86 wrote:

Trying this out on my personal machine as the machine I am having issues with is not approved to move to Sequoia yet. Still would like to know what the actual issue is and if they've fixed it for the new upgrade, why they haven't released it as a patch/incremental update to the old OS's. Thanks for the help!

Hum, this seems to imply the machine maybe a Managed Machine ie Enrolled in a company Mobile Digital Management services like JAMF or similar

If so, let use hope they Test Sequoia against there configuration and see what develops re usb_c keyboard

jdc_86 wrote:

When I try to use the Apple functions like skipping a song or turning up or down volume it brings up other items or functions.

When Keys Don't Behave Correctly - Apple Community