I work at a repair shop and can confirm that replacing the proximity flex sensor on iPhone 13 series does not disable Face ID functionality. I assume its the same for 14's as well but haven't been able to confirm that yet.
Has anyone else had issues with the Proximity sensor not working correctly after the repair? It seems every 14 PM display we've done, the prox always has issues working consistently afterwards. Tried many different tools/alcohol/ pry methods but no matter what it still doesn't work properly. By working properly I mean it'll go black when covered(while on a call), but sometimes it takes a minute or two to come back after uncovering it. Or it'll go black (on a call) without even covering it. Seems in and out. Thought it'd be a alignment issue but even after re-seating it it still has issues.