Managed iPhones having Calls Delayed / Freezing after iOS 26 with large contact lists

The specifics of replicating this issue:

-Corporate owned iPhone

-Intune enrolled

-Receiving Device Restrictions policy "Block viewing corporate documents in unmanaged apps"

-Contact counts above 10k

Solution(s):

-Have contact list lower than 10k. The lower the count, the better the calling experience.

-Disable device restrictions policy. (This is a temporary fix if needed as it is a fundamental security policy that should be enabled)

Please, if anyone can respond if their org is also experiencing this issue and if anyone knows if Apple or MS will be releasing a fix for this issue.