Magic trackpad not recognizing "clicks" after macOS 13.4.1 update

Try Rebooting computer into Safe Mode. (How to reboot into Safe Mode). This will perform a Disk Repair, clear cache files and only load Apple Software, extensions and fonts.

I’m not sure if this was ever resolved, but I’ve been having a similar issue with my 2023 MacBook Pro M2. I dropped it off for service and have been told that the trackpad isn’t compatible with the laptop, which is kinda odd. If you haven’t gotten this resolved yet maybe this is an avenue worth looking into.

You're Welcome. Glad it worked for you.