Home Screen wallpaper blur issue

Hi !

After updating to iOS 17.1, I am having trouble keeping my Home Screen wallpaper under the blur settings.

It shows a blur wallpaper in the preview while customising Lock Screen and Home Screen but it doesn’t blur the actual Home Screen background.

**attached are some of the screenshots from wallpaper settings

Note : This happens when I try to select different photo as a Home Screen wallpaper, works fine when Lock Screen and Home Screen wallpapers are same.