@matt-ribeir
From this perspective there are two viable options
Option One
Start Over from Scratch on your own
For Apple Silicon computer >> Use Disk Utility to erase a Mac with Apple silicon.
Always make a Time Machine Backup before proceeding
Even better, have two recent backups before going forwards
This is in-case the first backup should fail and they do
Keep the computer in this state without any installations of any Third Party Software - Full Stop
Then, Test if the Touch ID functions as per designed by Apple
If it does work correctly, this would be a good indicator the original issue is related to some piece of Third Party software presently used on the computer
Which software? Hard to tell as the operating system has been heavily modified by a lot of third party software
Option Two
Have the computer evaluated by the Professionals who have the Special Hardware Software and Expertise to diagnose the issue and offer possible solutions
Make an Appointment at the Apple Genius Bar
Be prepared as the Apple Technician will probably insist on wiping the drive and installing a clean version of the Operating System - Normal
They too will probably Test this Touch ID malfunction before they will consider further evaluation for a possible Hardware Issue