Chosen Solution
I have an iPhone 7 at my repair shop with home button issues. It had not been opened before, but does have 2 strange marks on the LCD. No other signs of physical damage to be found. The home button does not function at all, nor does the touch ID. I opened the device and the home button looks perfectly fine, everything seems in great, like new condition internally. I have tried multiple home button replacements, including the type that require bluetooth, nothing shows up in the bluetooth menu whatsoever. The ones that do not require bluetooth do not do anything. I have tried another display with the original homebutton as well as the replacements, no luck. I have tried a new battery and a restore, no luck. What else should i be looking for? Is there a component on the motherboard that gets damaged and will cause the home button to not receive any power, similar to an Audio IC issue?
My only guess would be that the home button’s circuit. Are you capable of probing around the board with a multimeter? I would inspect around the home button connector on the logic board.