Mac High Sierra not able to Set Touch ID - Canceled by another authentication

I am not able to set the touch id, may be after some minor update to High Sierra. Before that everything was working fine.

I tried reseting the password for KeyChain Login and KeyChain Local items, however nothing is helping.

Keep on getting following error message.

Solution 1:

This is a Keychain error and you probably need to rebuild it. These steps should fix it.

1. Open Finder.
2. Hold the Option key and on the menu click Go.
3. Click on Library to open that in Finder.
4. Drag the Keychain folder to the trash.
5. Restart your machine.

You will have to re-enter all your passwords again but it should fix the Touch ID.