This is likely due to your Duo Admin enabling a policy that requires Mobile Device Biometrics on this application (or all of your corporate Duo-protected applications): Duo Administration - Policy & Control | Duo Security. TouchID can only be performed from the iPhone itself and not the Apple Watch:
Requiring biometric verification changes the Duo Push workflow. Users may no longer approve an authentication request from the app notification. Tapping the Duo notification opens the Duo Mobile app. After you tap “Approve” on the authentication request, scan your enrolled finger at the Touch ID or Android PIN prompt or perform Face ID verification to confirm the authentication approval. If you are unable to authenticate with a biometric factor you can fall back to your device’s passcode
Please contact the IT Help Desk/Admin that manages your company’s Duo instance for more information.