If the previously-mentioned password set sequence and a hard restart (hold the Touch ID / power button for ~ten seconds) do not work…
Try plugging in an external keyboard, and (depending on the Mac login window settings) try entering the password in the username field — this both to see if what you are typing is what you expect, and (even if you can’t get at the user login field) to see if the keyboard keys are working as expected.
Also make sure the selected keyboard is language-appropriate and with no shift lock.
As correctly mentioned in another reply, Touch ID does not replace the password. All of the security is still based on the password.
If something from all that fails to resolve this including the restart and the password reset, I’d expect a keyboard hardware problem. It’ll then usually need service. Keyboard replacements are expensive, if there is no AppleCare.
Having been in what might be a similar situation on occasion, I’d also seriously consider replacing this Mac with an iPad, if the necessary apps are available for iPad. iPad is somewhat simpler to use, has fewer fiddly keyboard bits, has somewhat more robust hardware, and can move to Assistive Access should that guidance become useful.
But you know the current situation here and the trends here best, too.