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Google released the Android 7.1.2 update to Nexus and Pixel more than a week ago. Some users are reporting that their fingerprint scanner is broken after the update. Some users are reporting that in an attempt to fix their scanner they had deleted their saved fingerprint and then discovered there is no longer an option to add a fingerprint. You can still use the fingerprint scanner to reveal and dismiss the notification panel which means the hardware is still functioning. This appears to be a software only problem. If you are experiencing this problem you can try to reflash the update manually which has fixed the issue for some users. Google will likely release a fix for this issue soon. Have any of you updated to Android 7.1.2? Did you experience the fingerprint scanner bug? If so did a manual reflash fix your problem?
via Pixel Product Forums