I experienced the exact same issue. I woke my computer from sleep by lifting the lid, and rather than prompting me for a Touch ID authentication, as it should have, it required my password, which was obviously very unusual. It did not accept my password, which I'm 99% sure was correct, so I went through the password reset process. Following that, the Touch ID prompt just disappeared entirely even after deleting the finger and adding it back, restarting, messing with preferences, etc. The only thing that worked for me was unchecking the "Use Touch ID for: Unlocking your Mac" option, logging out, logging back in, checking the unlock your Mac option, logging out again, and then logging back in. Following this procedure, the Touch ID worked again as normal. I also think this bug may be related to the activity monitor app as somebody else suggested since I was using that app when the problem first arose. I'll now use "htop" exclusively! This appears to be a pretty significant bug since it is essentially responsible for locking people out of their own computers, so hopefully a fix will come out soon.