Hey, thebeet, thanks for posting! This is a new one for me -- we don't have any known issues listed internally for the HTC U11 Life, either.
I did some good old fashioned Google research, though, and did find a few threads on another forum where users were expressing the same issue last year (not isolated to this particular update) -- Home button/fingerprint sensor stopped worki… | HTC U11 and Fingerprint Scanner Gone? | HTC U11. It looks like Safe Mode worked for some of these folks, I'm sorry it wasn't the ticket for you! That would have been our first recommendation, so kudos for knowing your stuff and going for it!
At this point, the only recommendation we can make is to try a factory reset and to set the device up as new (without using a backup). I hear you about setting everything up again; I know it's not a quick or easy process. If for some reason that's still not successful, then we'd want to have you Contact Us so we could look into your options for a warranty replacement and hopefully get your fingerprint security options back!