Magic Keyboard Touch ID not working after Bluetooth drop

I have MacBook Pro:

Model Name: MacBook Pro

  Model Identifier: MacBookPro18,3

  Model Number: MKGQ3RU/A

  Chip: Apple M1 Pro

  Total Number of Cores: 10 (8 Performance and 2 Efficiency)

  Memory: 16 GB

  System Firmware Version: 18000.120.36

  OS Loader Version: 18000.120.36

And a Magic Keyboard connected via Bluetooth:

  Address: 9C:58:3C:ED:54:AA

  Vendor ID: 0x004C

  Product ID: 0x029A

  Firmware Version: 4.2.0

  Minor Type: Keyboard

Few days ago I had a zoom meeting and suddenly all bluetooth got disconnected for a

few seconds than connected back. Sad thing that TouchID on the keyboard does not work any more. All usual tricks – Forget-Restart-Connect, sudo pkill bluetoothd does not work unfortunately.

Anyone have an idea what can be done to get my TouchID back?

Thanks in advance.