Chosen Solution
I replaced a lot of things on an 8+ and after putting everything back the home button stopped working. The screen wasn’t replaced but the homebutton was the only thing that stopped working. Could it just be the ribbon cable that connects to the logic board and if i wan’t to keep touch id would it still work?
Chances are the cable for 3d touch and home button connection got damaged. As long as the home button wasn’t touched replacing the screen will fix that problem. If you haven’t already try reseating the screen connections while battery is unplugged.
Sad thing is: iPhone 7 and 8 don’t have a real home button. The button that came with the phone is the only button that will work. You can’t replace the button, or else it won’t work in any way.