You're right, you're supposed to have been allowed to disable Stolen Device 
Protection so long as you were in a familiar location and hadn't changed the 
default delay requirement to Always. Unfortunately, as I just found out, the 
device frequently forgets or misidentifies locations important to you. If you 
go to Settings, Privacy, Location Services, System Services, Significant 
Locations, you're supposed to see the places the system thinks are important, 
but on my device all I see are the hospitals I've just been in and not my home 
address, so it's clearly pretty useless and you might as well turn the 
protection off entirely if it's only going to inconvenience you. Which, as you 
say, you can't do without a valid fingerprint ...

In your case the good news is that you have a nuclear option: put the device 
into DFU mode, and wipe it clean from a computer. You must then manually remove 
the device from your account, and from Find My, using another device, so that 
it can be activated by the new recipient. I will leave this for followup 
discussion for now. Let us know if you run into trouble or have questions. Good 
luck.

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