TouchID stopped working since iOS16 [Fixed. Please see the approved answer for details.]
Since I updated to iO16, TouchID is no longer recognized by apps. The TouchID dialog appears, but then terminates as if the finger is not recognized. 1Password then falls back to the login code. Other apps, such as one for signing PDFs, report "Authentication not successful". When I disable TouchID in 1Password Settings, the switch remains grayed out and cannot be enabled. I reinstalled 1Password, now it tries to use TouchID again and falls back to the LogIn code at the first finger touch.
It seems that apps in general have problems accessing the security engine, otherwise TouchID works for all other areas like unlock, wallet cards, etc..
1Password Version: 8.9.5
Extension Version: Not Provided
OS Version: iOS 16.0 (20A362)
Browser:_ Not Provided