I was going through the self repair program information, and every indication is that the Repair Assistant seems to be able to recalibrate a Touch ID board, at least one purchased from Apple. They don't differentiate that repair from any other one they talk about, so I don't know if there is some restriction on only working on one you bought directly from Apple vs. a used part, but it does specifically mention repairing Touch ID on the M1 MacBook Air.
Mac Laptops Troubleshooting Input/Output Issues - Apple Support
Here's the part they're selling; I assume that's what you're replacing.
Self Service Repair Store
They actually show the repair assistant popping up for a new Touch ID board on their guide to invoking it.
Use Repair Assistant to finish a Mac repair - Apple Support
At this point we're really only guessing; only Apple can authoritatively answer the question of why you can't seem to calibrate a used Touch ID board since they show that process in operation. @flannelist Alisha, do you have any thoughts on this?
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