Very similar case now:
The two-finger scrolling does not work at all, as if not enabled. Disable and
back, reboot, power off and on ... nothing helped it.
DistroRelease: Ubuntu 18.04
Uname: Linux 4.15.0-62-generic #69-Ubuntu SMP Wed Sep 4 20:55:53 UTC 2019 x86_64
CurrentDesktop: Gnome
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Addendum :
The problem started recently, after one of the last updates, since June 2019.
It is irrelevant to mouse, which works fine, including the wheel-scrolling.
The system is a P50 lenovo, and problem appears either while on docking station
or not.
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** Changed in: software-center (Ubuntu)
Status: New = Triaged
** Changed in: software-center (Ubuntu)
Importance: Undecided = High
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https://bugs.launchpad.net/bugs/1410540
** Attachment added: touchpad_settings_4.png
https://bugs.launchpad.net/ubuntu/+source/software-center/+bug/1410540/+attachment/4297935/+files/touchpad_settings_4.png
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** Attachment added: touchpad_settings_2.png
https://bugs.launchpad.net/ubuntu/+source/software-center/+bug/1410540/+attachment/4297930/+files/touchpad_settings_2.png
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** Attachment added: touchpad_settings_3.png
https://bugs.launchpad.net/ubuntu/+source/software-center/+bug/1410540/+attachment/4297932/+files/touchpad_settings_3.png
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Note that, strangely, touchpad scrolling works fine when the cursor is
on the right of the screen (approximately the right quarter of the
screen).
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https://bugs.launchpad.net/bugs/1410540