Mac Book suddenly stopped recognising my password + touchID malfunction

Get a current backup, if you can.

Reset and reinstall and restore.

Here are the articles for the general sequence starting with erasing, booting Recovery on your particular Mac, and restoring your backups:

• Erase your Mac and reset it to factory settings - Apple Support
• How to reinstall macOS - Apple Support
• How to start up from macOS Recovery - Apple Support
• Restore your Mac from a backup - Apple Support

Then failing that, contact Apple Support, as it would appear either low-level firmware is corrupt, or part of your hardware is failing.

Only way to mark data as valuable is with backups, and those backups have to happen before the crash, corruption, failure, fire, dunk…. Too many of us unfortunately get to learn that the hard way too, by losing our data.

And partitioning is one of the ways to corrupt data — it’s why I usually pick guests and a virtual machine, and not native boot from partitioning. It’s harder to damage the install from a guest.

Try Target Disk Mode: Transfer files between two Mac computers using target disk mode - Apple Support

Data recovery is another option, though that won’t be cheap.

Other potential options here (those that modify the storage contents, such as trying to reinstall macOS atop itself) can cause more data to be lost, if this is a corruption.