Hello lrossga,
Welcome to Apple Support Communities!
We want to help so you can crop the photos for your wallpaper.
You should be able to crop the photo, try using these steps:
"Customize a Lock Screen wallpaper with filters, widgets, and styles
- In the Settings app, tap Wallpaper.
- Under the preview of your Lock Screen, tap Customize.
- Tap Customize Current Wallpaper or Add New Wallpaper and select a wallpaper.
- Before you tap Done on the wallpaper, make your customizations.
- To choose a font and text color, tap on the time.
- To add or remove widgets — like Calendar, Clock, Weather, Fitness, or Reminders — tap on the boxes above or below the time.
- To apply photo styles — like Black & White, Duotone, or Color Wash — swipe left or right.
- To crop and move your photo, pinch and drag your photo.
- To select wallpaper options, tap the More button. Perspective Zoom moves the wallpaper as you tilt your screen. Depth Effect enables layering with the subject of your photo.*"
This Apple Support page has the full details: Change the wallpaper on your iPhone - Apple Support
If the issue continues, try a normal restart of the iPhone to see if that helps refresh the software to resolve the issue.
"How to restart your iPhone X, 11, 12, 13, or later
- Press and hold either volume button and the side button until the power-off slider appears.
- Drag the slider, then wait 30 seconds for your device to turn off. If your device is frozen or unresponsive, force restart your device.
- To turn your device back on, press and hold the side button (on the right side of your iPhone) until you see the Apple logo."
Explained here: Restart your iPhone - Apple Support
We hope this helps.
Cheers!