Xperia X: fingerprint sensor inoperative when device encryption is ON

What you want to avoid is encryption or fingerprint use (or both?)?
To avoid encryption, (found here), you just can boot into recovery right after flashing, mount /dev/mapper/sailfish-root /mnt and delete /mnt/var/lib/sailfish-device-encryption/encrypt-home. I tried right now and it works.

If you only want to avoid fingerprint because your reader has a problem, can you not just skip the fp step at first boot?