So, if I do ‘t want to restore from a backup, reset settings, or jump through hoops (I’m just an average user, not a developer), is this something that Apple can fix with an iOS update?

Yes, I have a similar issue.in iOS 16.1 on an iPhone 12. Apple broke things badly with its new wallpaper implementation. Specifically, I have shortcuts, which independently change the home and lock screen wallpapers so that add sunset each day my home screen changes to a different background and my lock screen. Also changes to a photo from my photo album. This worked perfectly until 16.1. Now, when those shortcuts run, I wake the phone to find a black background home screen, and sometimes also a black background lock screen. Rebooting the phone sometimes fixes this, but only temporary early. Other times rebooting does nothing to fix the problem. It is ridiculous that Apple is now forcing users to choose one home, screen background, and pair that background to the lock screens. And iOS 16 and 16.1, the user is allowed to let the lock screen rotate through photos in an album, but is limited to the one home screen. Why?