M2 MacBook Air Touch ID not unlocking from lock screen

I don't know when it started, by my M2 MacBook Air will no longer unlock any user account from the lock screen via Touch ID. What's weird is that Touch ID works perfectly fine for every other use. It even works fine on fast user switching. Just not from the lock screen.

I know if you haven't used your Mac in a while, it requires the password. That's not what I'm talking about. If I lock the screen, it will immediately require password rather than Touch ID. I've also checked System Settings, and "Use Touch ID to unlock your Mac" is turned on. I've restarted. I'm fully up to date, macOS 26.3.

Is anybody else experiencing this? Any ideas on what might help?

Thanks!