Is it normal for Touch ID to not work on MacBook Pro at startup and require a password instead?

Normal.

Apple specifically calls out this 'just-after-Startup' case in the documentation of the feature.

see last paragraph:

• if you still have to enter your password: For security, you need to enter your password when you start your Mac. Sometimes you need to enter your password to continue using Touch ID. For example, users must re-enter their password every 48 hours and after five incorrect fingerprint attempts.

from:

Use Touch ID on Mac - Apple Support

Yes this is normal. On any apple device with some kind of security sensor like Touch ID or Face ID, at startup it requires to type the password in. This a safety measure that apple implements. Hope this helps :)

Joe Cowley wrote:

Touch on my 16in MB Pro M3 does not work when I start up the laptop. I have to type my password instead. Is this normal?

[Re-Titled by Moderator]

Original Title: Touch ID not working on start-up

yes there are a few caveats to TouchID—

where Touch ID will not be accepted by macOS:

• If you restarted your Mac, or if you're not logged into your user account.

• If you have not unlocked your Mac for 48 hours.

• If you are trying to unlock Security & Privacy

• If you are trying to unlock Users & Groups Settings (when FileVault is on)

• If 5 wrong fingerprint attempts