Can we just reset my Face ID to resolve this issue

See this support article:--> If Face ID isn't working on your iPhone or iPad Pro - Apple Support

and/or this one:--> If an alert says Face ID has been disabled on your iPhone or iPad Pro - Apple Support

If, after performing all the steps provided in the above support articles, the issue persists, contact Apple Support directly, using this specific link:--> Apple Support , or make an appointment and have your device inspected at an Apple Store or AASP (Apple Authorized Service Provider) among this list:--> Apple - Find Locations - Location Selector. After checking it out, they'll give you all the available options.

Regards

Giulio

According to Apple:

Using diagnostics available in iOS 14.6 or later, Apple has detected an issue with your TrueDepth camera that might cause it to not function as expected. The TrueDepth camera contains lasers, which might be disabled for safety reasons if the device malfunctions or is damaged. This won't prevent you from using your iPhone or iPad, but until your iPhone or iPad is updated or serviced, you might not be able to use Face ID, Animoji, Memoji, and some other features that use the front camera.

As a result, I recommend service.

Service Checklist:

• iPhone service pricing.
• Check AppleCare Coverage.
• Get your iPhone ready for service.

Click ▶︎ Start a Service Request. ⚛️

Need more help?

• Call Apple Support at 1-800-APLCARE. 📞
• International Support. 🌐
• Contact Apple Support. 📝
• Live chat using Messages. 💬

Click ▶︎ Check Repair Status. 🔧