The Touch ID problem is related to Keychain. 

I went through the following steps (from [this Apple Community question][1]) and it worked for me (I am also on Catalina):

1. Open Finder. 
2. In the menu bar, click Go once so the dropdown menu appears. 
3. Hold down the Option key. You will see a Library folder appear in the list under the Go tab. 
4. Open library. 
5. Drag Keychains folder into the trash. 

**You will have to re-enter all keychain passwords, but the Touch ID will work.**


  [1]: https://discussions.apple.com/thread/7765052?sortBy=rank