touch ID runs through a flex under the metal back of the LCD. there may have been damage to the flex during the repair.
try a hard reset before looking into replacing any of the buttons or flex cables involved.
touch ID is very finicky with apple devices and can be caused by a bunch of different possibilities. this was just a possible reason.
the biggest cause is opening the device without turning it off. along with the following;
- power surge: bad battery, charge port, or ESD can cause this. Did you use an anti-static mat, glove or wrist strap?
- Metal tools: Phones us a substantial amount of Capacitors to run properly. A capacitor will hold a charge after it stops receiving current. essentially tiny batteries. if you touch these with a metal tool, it can cause them to discharge through the driver, causing a short.
- There could be a software problem introduced by the new battery. you should always try to reinstall the software if you notice an issue with software failures.
- you could have a problem while disconnecting or reconnecting the screen, which is mandatory for a battery repair. Most commonly, someone will tug on the flex to remove them, rather than popping them off with a spurge. you could have made a small tear in the extension flex from accidental stress.
in essence, without having the device in front of me, i will be unable to give you a definitive answer. just possibilities.