Follow the steps in this guide to replace the home/Touch ID sensor assembly, including the gasket and cable, in your iPhone 7 Plus.
Note that for security reasons,the original Touch ID sensor is paired to your iPhone's logic board at the factory—so, replacing the sensor with a new one will cause the loss of fingerprint sensor functions.
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To avoid accidentally straining or tearing the display cables, it's best to completely detach the display assembly before beginning repairs on the home/Touch ID sensor. But if you are comfortable doing so, you may skip the display assembly section of this guide and go straight to the home/Touch ID sensor section.