I have the same problem after using my surface for 2 weeks , what is unique in the problem that the fingerprint option disappeared from the setting menu
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I have been using the device since 17 Sep and it was working perfectly with the fingerprint
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Today fingerprint reader suddenly stopped working, and I got a message on the screen fingerprint not working, logged through the pin and went to setting security to add additional fingerprint the option
was there but disappeared briefly after that. Now when I log to settings under security I only have the options of Screen lock (None, Swipe, Pin, Password ) and Smart lock, nothing for the fingerprint
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Since then the fingerprint option disappeared completely from the menu (under security)
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Troubleshooting done
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Power on /Power off
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Factory reset and start as new device (not recovering from backup)
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Recovery image
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Unfortunely all my troubleshooting went in vain