I recently purchased an iPhone 13 from Best Buy. I had NO problems with it on iOS 16. I then upgraded to iOS 17 followed by iOS 17.1 and I started getting prompts to reenter my Passcode for Face ID. I never saw that with iOS 16 and come to think of it, it never was a problem with iPadOS 16. I started seeing prompts to reenter my Passcode after I upgraded to iPadOS 17.
I got an iPhone exchange at Best Buy and I no longer get prompts to reenter my Passcode for Face ID because I kept it on iOS 16. So I am waiting for them to fix that software bug before I upgrade to iOS 17.