So SOO many issues

First question: is your phone up-to-date? Are you using the stock OS? If yes, you should have a version number named 19.11.2.

Is the button itself on the motherboard blocked? In this case, bad news, you need a new motherboard (or you can try unblocking the button somehow).
But how do you boot the phone then? Maybe it could be a software issue?

Did you check these topic?
Fairphone 2 touchscreen suddenly freezes
Noisy coloured pixels on my Fairphone 2

This should be easily solvable. Go in the settings→Maintenance→Proximity sensor calibration, and follow the steps.

How exactly doesn’t it work? Does it crash? Does it fail to capture photos?
What happens when you use another camera app, e.g OpenCamera (F-Droid and Play Store)?

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