Search bar in System setting is not working after macOS27 Update.

This appears to be an issue specific to your system. First report of this that I have seen, and the search function works fine for me in System Settings on macOS 27.

Have you rebooted your Mac? If not, that's the first step. If that does not help, then see if the problem is present when you boot in safe mode. That process performs some system cleanup and clears caches, and also disables 3rd party extensions that may cause problems.

Start up your Mac in safe mode - Apple Support

If that does not correct the issue, test in a new user account. A newly-created user account will have all settings at default, and if the issue does not occur in that new account then it provides guidance on what may need to be changed to correct the issue.

Add a user or group on Mac - Apple Support

Once the testing is complete, the new account can easily be deleted.

Delete a user or group on Mac – Apple Support

Those steps will help to isolate the problem.

It might help to download and run EtreCheck, written by a long-time forum member. The free version is fine. Post the full report using the Additional Text button. No personal information is revealed.