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It was as strange as it was working perfectly fine half way through the day and suddenly it just stopped and refused to acknowledge any fingers, so I thought turning it off and on again to reboot it would work and then got the message it fail to launch. Might restore it late and see if that does the trick.
Touch ID on my SE is rubbish - I have to update my thumbprint once a week to keep it working.. (but I never get 'failed to launch' message)