Just got home after visiting the apple store this afternoon.
Genius took one look at it and said that’s not right, went out the back came out with a brand new one in an original box (not the brown box ones) opened it and gave me that one.
I asked him how come it’s in a proper box, he said it’s too soon to have dedicated ones for faults/replacements. So they keep a certain number of their allocation back on the first two days just for this sort of problem. He did have to keep the box, headphones, charger.
Anyway, I’m home now. Set up Face ID in 10 seconds and working a charm now!!
Thank you all for you help. I almost shaved off my beard to sort this out!!
Oh and I just tried unlocking in a closed closet with my beard. And it worked
Super fast. Possibly faster than my old X did!