MB Pro (2020, M1, Sonoma 14.6.1) keeps resetting when it goes into sleep mode from inactivity

I already checked the "log out automatically after inactivity" setting and it's off.

Problem started today. What happens is when it goes to sleep automatically, even if I wake it up immediately, it says I have to re-enter my password to activate Touch ID and when I get in my browser asks me if I want to restore my tabs and any app I closed beforehand but didn't quit out of opens a window. Any ideas?

Additional information: Ran into Touch Bar issues earlier this year. It started flickering and then blacked out. Right as my AppleCare was about to run out I started cleaning it up digitally and physically as well as updating it to take it in for a check up and miraculously the Touch Bar fixed itself but that only lasted about two weeks before it started flickering and once again it blacked out. This just happened so I'm wondering if it's related to this issue.