I had a very similar problem (SP3 I7, Win10) , where a band along the right side of the screen stopped responding to finger touch, but did respond to the pen. This non-response even included the Windows start button. The problem seemed intermittent, then became full time over the past month or so. I can't associate it with a particular update.
But I did find a fix! There is a YouTube video documenting this issue:
In the comments, the OP points to a related Reddit discussion, which leads to the Sony site:
Sony eSupport - SVF15N190X - Drivers & Software
Here you will find a utility, along with detailed instructions, that somehow recalibrates the screen. Running this restored my screen to normal. Probably worth a try before doing a system reset or returning the unit.
Will it work on Win 10? It says "
Windows® 8.1 64-bit"