The bootloader must load the DTBO image that is compatible with the recovery image. in your case Touch is not working because the TWRP version does not support it. There is not much you can do, the TWRP kernel must be compiled with touch support (or maybe binary hex-patched).
Look for dtbo.img or (edit: dtb is appended to kernel for y7)
use the adb shell ...
I've figured it out. Besides the carrier-specific ROMs, Motorola has a "retail channel", called RETUS (Retail - US, I believe).
This is not tied to any carrier, and you can match the factory version by comparing with what you get here:
# fastboot getvar ro.build.fingerprint
(bootloader) ro.build.fingerprint: motorola/james/james:8.0.0/OPP27.9
I have formatted the whole phone including bootloader
Bootloader can't be overwritten, your device will be bricked. I think you meant boot partition which contains kernel. But that doesn't contain personal data you've been saving. That's saved on userdata partition which is mounted at /data and one of its directory /data/media/0 is exposed as /sdcard ...
Download the rom at http://download-c.huawei.com/download/downloadCenter?downloadId=79304
To install the rom follow instructions at https://huaweiflash.com/how-to-flash-huawei-stock-firmware-all-methods/
I had some similar weirdness with a lenovo x1 gen 5. The factory image installer would hang at the system image 4/5 and a few other wierdnesses.
I had been using a usb-C<>usb-C cable.
When I changed to a usb-A->usb-C cable, the problems vanished.
The ROM you provided does not contain a valid scatter file or recovery.img so you can not use SP Flash Tool.
I recommend you to make a backup of boot, copy the boot.emmc.win to PC, then to another phone and patch it with Magisk Manager apk
After successful patching, copy the patched file back to PC
Reboot the phone to bootloader, and flash the ...