iPhone 8 Touch ID not working after battery replacement

Hi, I replaced the battery on my iphone 8 and did a hard restart but I got an error message that Touch ID was no longer working. Also, the home button does not work. I checked all of the connections again and same thing. I put the old battery back in and everything works fine. Tried the new battery again and same error. I didn’t replace or disconnect the screen / home button or any other parts.

I’ve tried restarting several times and playing with the options but no luck so far. Any ideas? Thanks!