Home screen wallpaper blur doesn't work

I have my home screen wallpaper blurred so it's easier to recognize app icons. However every time the iPhone 14 pro is restarted this blur goes away, sometimes even without restarting, just at random... When i go to the wallpaper settings, i can see that the blur button is selected, but this is not true. I then have to deselect it, go back to home screen. Back to wallpaper select the blur once again, back to home screen and then it works... till next random fail.

Any idea what is going on here?? I just upgraded from 16.7.2 to 17.1. Regretting it... A yeah, my battery is also getting killed. I thought .1 version would be safe!