I have a newer SE Phone
The "Touch ID & Passcode" selection is not available. My wife has the same type of phone and hers is available. I have tried to restart my phone, but that does not help.
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Do you have a passcode set?
If so then check there is no restriction in Screen Time, preferably turn Screen Time right off.
Also try a forced restart
https://support.apple.com/guide/iphone/force-restart-iphone-iph8903c3ee6/ios