Registered fingerprints on device get removed when passing unlockType=password as capability
It apparently is something to do with ADB, but I really can’t identify it in Appium’s source.
Is there any way to avoid it clearing all my unlocking settings?
You could try to set the appium:unlockStrategy capability to uiautomator in order to not use adb shortcuts
When I set it to uiautomator it failed to send the password to validate. It stops once it fills the text 
Using a real device with android 11 and MIUI 12.5
Try to get another device with a stock Android firmware