Touch ID issues since IOS 17.4.1

1) Check your TouchID settings:

Settings > TouchID & Passcode > [Use FaceID For] Wallet & ApplePay - set to ON

2) Check your Wallet & ApplePay settings:

Settings > Wallet & ApplePay > [Payment Cards] - check that you have added at least one Credit Card

3) Check your Safari Settings:

Settings > Safari > [General] Autofill >

• Credit Cards - set to ON
• Saved Credit Cards - check that you have populated Credit Card details that you use for online purchases

I have the exact same issue. I had to update my phone to activate a new Apple watch and now I cannot do anything because I had turned on the stolen phone feature and the touch ID does not function. The touch ID worked very infrequently before, but now it does not work at all. So now I can't even activate the watch and I can't even use passwords,make purchases, etc... Not cool. And apple support was of zero help. I have no idea what to do now.

See this article.

If Touch ID isn't working on your iPhone or iPad - Apple Support

tiggerssprings wrote:

I have tried this

Excellent. What did Apple Support tell you when you contacted them?

You’re welcome. Enjoy your iPad.