Does the Magic Keyboard with Touch ID work like a regular keyboard with T2 chip Macbooks?

Does the Magic Keyboard with Touch ID work like a regular keyboard with T2 chip Macbooks?

Yes.

The Magic Keyboard with Touch ID would work with an Intel Mac just like a regular Magic Keyboard. The Touch ID authentication functionality would remain unavailable on unsupported Macs.

You may need a recent version of macOS installed for the keyboard to be recognised and usable with your Intel Mac.