The Touch ID problem is related to Keychain.
I went through the following steps (from this Apple Community question) and it worked for me (I am also on Catalina):
- Open Finder.
- In the menu bar, click Go once so the dropdown menu appears.
- Hold down the Option key. You will see a Library folder appear in the list under the Go tab.
- Open library.
- Drag Keychains folder into the trash.
You will have to re-enter all keychain passwords, but the Touch ID will work.
