Chosen Solution
I purchased new home button from iFixit and it seems to be working for going to the home screen, etc but I cannot get the Touch ID to setup… with error: Unable to complete Touch ID setup. Please go back and try again. I used the Touch ID all the time … please help.
This is a security feature by Apple. In order to prevent some malicious person from stealing an iPhone, removing the original home button with the owners fingerprint, and replacing it with another home button with the thief’s own fingerprint, allowing them access to the phone. To prevent this, when the home button becomes significantly damaged or is replaced, Touch ID becomes disabled, sometimes stating that is can no longer be activated, or sometimes allowing you to try set it up, but always failing.
In short, you can replace the button to restore “click” functionality, but never the Touch ID. Only the original home button coded to the phone will work for Touch ID.