Up until a few days ago my S7 was working perfectly. Now there appear to be some "dead spots" where my touchscreen doesnt work, especially when swipe texting. These spots arent always there, and I can eventually press every spot/key and get a response after a few presses, but its super annoying and makes swipe texting and scrolling super annoying or impossible. 

Phones never been dropped, and the only thing thats changed is that I installed a new update immediately before these issue occurred. The last update was version: G930W8VLS4CRH1/G930W8OYA4CRH1/G930W8VLS4CRH1.

What Ive tried:
1) uninstalling recently installed apps
2) the *#0*# touch test shows that there a particular area on the keyboard (Y--> and G-->K) where, when swyped over either doesnt get sensed, or causes the cursor to jump around and "spazz out"

Few questions:
1) Does this sound like a hardware issue or a software issue?
2) If its hardware, what needs to be fixed? Would it just be a screen replacement or are there more important underlying components that need fixing?
3) Could this be related to the new update or is the timing just a coincidence? 

Thanks a lot in advance everyone!