Macbook Air 2020 Restart problem pop up and touch id issue

So I keep getting this window popping up every time my computer screen shuts down sleep and shut down. It's super annoying and doesn't allow me to use my touch id option as indended. The touch option works only when I catch it in a certain level of sleep mode, but if it's REM sleep mode it restarts and I have to enter my password... I have done all the preference tricks, IT at my office checked for corruption and there was none. Some people are saying its a bug in the update, but my computer has updated since this started. I did a factory reset at the suggestion of a geek squad member, still doing the same thing. I bought it in May 2020 and it was perfect for a month and now this. I know it's such a minor thing, but this is the first mac that I've purchase Brand New and it's super frustrating!! Should I take it to the mac store for service or just return it all together?