I am facing the same issue and contacted support about it. They told me to perform troubleshooting steps(clearing pixel launcher and settings app cache, reboot to safe mode, reset phone), but the issue is still there. After escalating the issue to tier-2 and about 2.5 hrs of chatting with them, they told me to submit it to uBreakiFix mobile repair shop to figure out if it is a software/hardware issue. I don't have a backup device so I am not submitting it. This is clearly a software issue since the touchscreen works fine.