It is total insanity!
I have same maddening issue with Hello for Business
Enroll (setup) fingerprint on Azure AD/Intune machine
It works if I ie lock the session, it might even work after first reboot. Then never again. It either does not show as an option, of it shows, accepts fingerprint, but instantly requests PIN
I can delete the fingerprint & set it up again, and the same will happen over & over.
Same behaviour applies to Face recognition. And it is not specific hardware (so far tested on two separate Dell Latitude 7400 2-in-1 & Latitude 7420
If I do use either face or fingerprint on NON Azure/Intune machine (with local login of Microsoft login), it ALWAYS work just fine (also tested on multiple hardware)
So it is only Azure AD/Intune devices
The policies are correct (otherwise it would never allow to login)
Seb