Chosen Solution
Replaced the screen with Ifixit iphone 7 screen kit. The display worked seemingly perfect for a few hours . Wiped the phone and loaded lastest software and then the touch screen stopped recognizing any screen taps. Home button works without an issue. Curious if anyone has seen similar issues and know if it could be hardware or if the software updated caused it to stop working..
It’s most likely a screen issue. To be certain, you could re-install you’re original screen to see if that one works properly. If you confirm the screen, or if you believe that is the issue, contact iFixit Support (help.ifixit.com) and they will take care of you.
I would open it back up and make sure the connector for the display has not come loose