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I have been reading the comments, Reddit, Apple Discussion.
I have let Korean Tech Youtubers know about this issue and Youtubers who have tried it out "all" had this issue.

To briefly summarise for the people who do not want to read all the previous comments, this issue only happens:
1. when screen protector "AND" phone case are on.
- Korean Youtubers have found out that the screen protectors with less than 0.15mm thickness will 'NOT' cause this issue.
- Cases that have open sides / bottom will 'NOT' cause this issue (due to skin touching the aluminium part of the phone)

2. When bigger part of your finger touches the screen (Fat fingers). (it's not the fact that you are using a thumb or an index finger or if you are holding it with one hand two hands)
- A lot of girls (women) do not realise this issue because they have small fingers.
- I have tested this out to people who said that they did 'not' see any issues with their minis. I asked them to try using bigger area of their fingers to touch the lock screen and they 'ALL' had issues. I have asked them to ask their husband or boyfriend to try it and they were having the same issue.

3. It happens only on certain screens such as: lock screen, camera app from the lock screen, notifications from the lock screen, calls taken from the lock screen, shut down screen, phone call screens from certain applications i.e. WhatsApp, Kakaotalk, etc...

Based on the above circumstances people have figured out temporary solutions:
1. Use 0.15mm thickness screen protector.
2. Use cases which are open on the sides and bottom.
3. Use less part of your finger(s) - e.g. tip of a thumb, tip of an index finger
4. Use back tap - only problem with this is torch button and camera button in the lock screen will still have the problem.
5. Use Foil - Problem with this is that it looks messy.
 
I just got off the phone with the follow up call from Apple. They wanted to confirm the problems I, and many others have been having, along with the temporary workarounds (Tapback and tin foil, along with no case or no protector). He asked about MacRumors and I confirmed a story had been posted and most , if not all mini users affected. I was told that Engineering is aware of the problem and did not need any additional data from me. I was told in no uncertain terms, that engineering believes that the problem can be fixed with a update. I was also told that if Apple finds out that there is indeed a hardware problem that would require a recall, they will go back to your Case ID to verify eligibility. I asked if it is believed that an update will happen before the return window closes on 1.8.21 and he couldn’t say. He just said make sure to keep your software up to date.

Make sure to call Apple and get a Case ID, in case it does end up being hardware as well.
 
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Since you have extended holiday return with the mini, are you going to wait for Apple to resolve?
I was happy to wait as the issues I thought I had were minor, however today I was out doing food shopping, I got a call and I couldn't take the call, luckily I had my Apple Watch to answer the call. Also, I was unable to interact with the touchscreen when I tried pausing/scrolling some music I was listening to.

I will speak to Apple in the next day or two and see what they suggest. I just hope it's software, not a hardware related issue.

EDIT... missed your post just before mine, that's basically what I was told.
 
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I was happy to wait as the issues I thought I had were minor, however today I was out doing food shopping, I got a call and I couldn't take the call, luckily I had my Apple Watch to answer the call. Also, I was unable to interact with the touchscreen when I tried pausing/scrolling some music I was listening to.

I will speak to Apple in the next day or two and see what they suggest. I just hope it's software, not a hardware related issue.

EDIT... missed your post just before mine, that's basically what I was told.
If you use the tip of your finger to answer the call on the phone, it should work. The same with music. I don’t always remember to use the tip of my finger, as muscle memory kicks in first. Lol
 
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Well, spoke too soon haha. I see now what you all mean, there is definitely a very small sweet spot on the lock screen. If my thumb doesn't directly hit the flashlight or camera nothing happens. I have smaller fingers so don't notice it often. Tried using bigger part of my thumb and saw the problem. Hopefully there will be a software fix. Glad the return window runs into January!
 
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Has any Beta 2 fixed bugs that beta 1 hasn't. I feel that bugs of this kind are solved over 14.2.1 style
That's a great question - the changelog isn't extremely helpful and /or populated yet. We'll see. I wouldn't be surprised if this'll come in a few betas.
 
I had touch issues before and 14.3 beta 2 seems to have fixed it. Tested everything besides answering a phone call.

I have apple silicon case and Spigen GLAStR.

Edit: After more testing I have a feeling it is better than before, but still a lot of depends on how big is the area of the touch. If I put my whole finger it doesn't work. If I use just the tip everything works. #YouAreTouchingItWrong
 
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I want to buy the Mini but in doubt after this issue, should I pull the trigger?
 
Guys, here is the best reasonable explanation so far I read from reddit.
Apple has built a function so that your phone will not be waken/unlocked by accidentally touch on your pocket/bag. They use certain “amount of touch” to consider as a accidentally touch. That explains why everything is fine after unlock.
However in the mini, when apply SP somehow this “amount of touch” getting smaller than most of people’s thumb so it still “thought” that we just accidentally touch it. Maybe it’s due to smaller size of screen, I’m laughing my ass off if that’s the case. Anyway, when it considered your thumb as accidentally touch all your touch will not work as it should be.
Why touching the frame would help because it knows that you are actually holding the phone, there is no need to check for that “amount of touch” so any touch would do.
That’s why issue happen only when you have SP (it falsely detect accidentally touch) AND a case (it dont know if you are holding the phone).
You know what are work around solution. 1 need to touch gently with the tip of your thumb. 2 need to touch another metal part of the phone body at the same time. 3 remove either SP or case.
I hope Apple can fix it with a hot fix, it’s really lousy for an flagship device.
 
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Just came back from the apple store, showed the rep, got a replacement phone and even tried to it with a Belkin privacy screen AND apple leather case

issue persisted on the replacement phone in front of the rep, even had the rep try and acknowledged its an issue. all the notes were added to my case and... well at least someone more acknowledges this is a problem, other than the plethora of acknowledgements in this forum
 
Guys, here is the best reasonable explanation so far I read from reddit.
Probably the most plausible explanation so far. The theory works with why it works with case or screen protector but not both. Which thread was discussing this on reddit?
 
I'd be returning before the 14 days.
I’m on my second unit and I’ll be returning it...it’s totally annoying to use.

The fact Apple hasn’t officially called out the issue and said a fix is coming is ridiculous at this point. I have zero trust that they’ll do the right thing with any haste without a giant spike in product returns that costs them bottom line dollars. These aren’t the Steve Jobs days of building a brand based on excellent products for the consumer, these days it’s only what is best for increasing shareholder value
 
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