Chosen Solution
Many have delt with this but its new to me an very frustrating.I have carefully replaced the screens an org. home buttons on 2-iphone 7 s.Only to find that the home buttons work but do not work.Touch ID works fine on them both. So i have both phones set for a 4 # password an my finger for touch id. Power up the phone an it goes into that screen where it asks for password before touch id is enabled.I press the Cancel-bottom right an get into that 1st startup screen where it says press home to unlock. HERE -my Home Button Works fine.Any skin contact an it sends you into the next screen an you also feel that click-button feeling.Hit Cancel an Home button always works perfectly here. So next after touching home with my knuckle i enter my passcode phone goes to 1st page.Here the Home Button stops working.-Almost always-I also discovered a rarer method to have it work very weirdly past here for a few minutes. But my point-i did not hurt or damage the home button but it stops working .Without doing the above you would think home button never works -but it does only there. This is on both phones too. Thinking it could be the screens-will try others but any other help would be appreciated.
The two functions (click & TouchID) are controlled by different circuits. If the “click” functions works erratically, it can be caused by the U10 IC on the Home Button flex. It is very easy to damage when removing the HB; all it takes is one cracked solder ball to cause issues. In your case, it appears to work some of the time but it is still the likely issue. This requires a micro-soldering repair and is not DIY.