On all of our organizations brand-new Macbook Pro with Touch Bar, the Touch ID function is gone after updating to OSX 10.12.4 on machines that have SEP 14 MP1 installed. No reaction to finger presses, and trying to add a fingerprint results in a message "Unable to complete Touch ID setup". On devices that are already using the Fingerprint Unlock feature of touch ID, the machine is unable to restart at all. They get stuck in an update loop that you have to boot into recovery mode to fix, which leads me to what I had to do to fix the issue, and is easily reporudcible to the point that I am certain SEP is causing this issue.
If you move the following daemons out of the launch daemons folder,
cd /Library/LaunchDaemons/
rm com.symantec.symdaemon.NFM.plist
rm com.symantec.liveupdate.daemon.NFM.plist
update the mac to 10.12.4 and then replace the daemons back into LaunchDaemons and restart SEP 14 MP1 and the Touch ID features work perfectly. If you dont remove those daemons, or symantec from the mac, you cannot upgrade to OSX 10.12.14 without it causing the upgrade death loop, or touch ID to fail beyond use. We have many new Mac devices in our environment, and we are not the only people experiencing this issue. This reddit post was not by me, but was the only place I found anything that helped with this issue.
https://www.reddit.com/r/applehelp/comments/5jrrqg...