Chosen Solution
I recently replaced the screen in an IPhone 8 Plus and the home button isn’t working but the Touch ID still functions. I’ve tried loosening the screws. It’s an ifixit screen so I doubt that’s the problem.
It doesn’t matter where you purchased the screen. If the shortest flex at the bottom gets a micro tear when installing it will produce the symptoms you are facing. You will need to try a replacement screen. If the home button still doesn’t work it will most likely be a damaged turtle IC on the home button assembly.