All of the things you're suggesting, somewhat insistently, can all be found with a basic Google Search...
But,
from a MacRumor's Article published a month ago:
M1 Security Features
Intel Macs had a built-in T2 chip that handled security and other features on the Macs, but with the M1 chips, that functionality is built right in and a secondary chip isn't required.
The M1 has a built-in Secure Enclave that manages Touch ID and a storage controller with AES encryption hardware for SSD performance that's faster and more secure.
So, again: With M1 as opposed to Intel Macs, nothing's changed with the Touch Bar that runs BridgeOS (and also includes the TouchID power Button) other than there's no need for the T1 to control the Secure Enclave due to it being so tightly integrated into the M1's SoC. So, Same Touch Bar, same TouchID.
Sorry if this is bothering you so much, just trying to get the facts out there for anyone else that might also be having issues with their TouchID not working, as these things are all tied together regardless of how much you insist on saying they're not.