TouchID stopped working since iOS16 [Fixed. Please see the approved answer for details.]

Huh. Oddly enough still plenty usable aside from this niche bug on iPhones which affects those of us that do a full reset on our phones. If it's that big of a deal back up your phone, erase it, and restore it which fixes the problem. Its only a bit more drastic than a full reset and definitely a lot less drama than is displayed in your post. Other companies software is irrelevant here and I expect if it wasn't causing them real problems it would have been fixed already.