Same issue here, phone worked perfectly before the update. Used Face ID to start the update. As soon as it was done my phone “detected a problem with Face ID “ and it hasn’t worked since. I tried all of the suggestions in this tread along with multiple you tube videos. Talked with two Apple Customer support folks. The first one said I would need to take it to the store, I chose a Best Buy. The guys there were super nice but could not help. They had seen it before. I did the Apple support chat again who set me up with an appointment at the Apple Store. 45 min drive there. Waited for 40 more mins for them to walk out not even look at my phone and tell me that I need a new camera and it would cost $169 but since my phone was so old (iPhone 12 purchased through Verizon 3 years ago) they would suggest purchasing a new phone. The diagnostic test performed by Apple support through chat showed hardware issue and Apple stands firm that the update did not cause it, just pointed it out. Funny how it worked perfectly fine until after the update
I was then told if I did not want to pay for the new true depth camera, or purchase a new phone I could still use my phone just would not be able to use Face ID.
So good luck guys, seems we paid a a lot of money for a phone with defects that was brought out after an update.
Should have stuck with Samsung.