How do I fix 'Your password is required to enable touch ID' every time I lock my screen on Mac?

After delaying Sequoia update the maximum I could, I decided to give it a go, since then, my Touch ID became useless, since EVERY time I lock my screen I have to re-type the password. I always get the message saying at the title.

Ps: The Touch ID works fine, I use it instead of typing password to sign-in to websites (Macbook unlocked)

[Re-Titled by Moderator]