I did a diagnostic on my iPod nano 7th generation and it said my touch has failed what do I do to fix this issues

SOURCE: Ipod Nano 2nd Generation won't charge on Boombox

The problem is "ipod dock receiver connector"(connector is fuck), move forward and backwards the ipod just point the ipod can play the songs..

try you!

SOURCE: 2nd generation ipod nano

try holding the menu and the center button.

SOURCE: ihome ih9 wont work with 3rd generation ipod nano

Look at the Box and the Manual! 3rd Generation is not supported by iH9! Clearly marked on the Manual.

SOURCE: my ipod nano 4th generation wont unlock

Reconnect your iPod to the Primary Computer where you set up the iPod originally. This will unlock the iPod and allow you to change the lock code.
Peter

SOURCE: 2nd generation ipod nano with the "white screen of death"

Resync it to iTunes. You may need to reset it to defaults and then resync it, but resync usually works.