Touch ID not working

I just migrated from an Intel Mac Book Pro to one of the new Mac minis (M4 chip). The Touch ID feature works fine for logging in / unlocking screen but the Touch ID option is greyed out in 1Password Settings->Security.
The 1Password Touch ID feature works fine on my Mac Book Air (M1) with the same model Magic Keyboard (external monitor). I have tried the usual fixes (restarting, turning on and off the Touch ID settings in System Settings->Touch ID & Password). After the migration I needed to download a new copy of 1Password (8.10.54). MacOS is 15.1.1 I'm wondering if 1Password does not recognize the combination of a non-laptop M-series computer with Magic Keyboard as being Touch ID capable. (This feature is the reason I bought the Magic (expensive) keyboard.)

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