iOS 18.2.1 Homescreen Customize AUTOMATIC option not working?

Under Appearance I have it set to Automatic - Dark Until Sunrise.

The icons will automatically switch between dark and light depending on the time of day without a problem, however, my Homescreen background does not. I have to go in and manually select Light/Dark or toggle that little "sun" symbol between light and dark.

It's been like this ever since I first updated to iOS 18 in September and I've been hoping with each update that it'll be fixed, but so far the issue has persisted.

I get the feeling this is a bug that Apple needs to address. Hoping maybe someone out there has found a way to fix this though?