An update - I had the same HB issue-fixed my own iPhone7 screen with an iFixit screen (not cheap), reused my HB and my old camera/speaker assembly. Touch ID worked, but the button was unresponsive. Removing the screw from the back of the button was not the solution. I went through the DFU, and what it gave me was a “virtual” HB that appears on my screen as a ghost button. My touch id opens the home screen and when I want to return to it from an app, all I do is touch the virtual button. It’s a weird work around, but it works.