The Alabama legislature revoked the validity of digital licenses in early/mid 2023. They didn’t want it being used for voter registration and/or voter identification. From what I see online, the state sent a notification to all license holders that had entered them, apprising the license holder of the need to remove the license as it was no longer a valid form of ID.
Web info is conflicting as to when the option to add the license was removed. But it was no longer in the Wallet by August 2023.
Currently, only 4 states recognize and support the use of digital wallets for their state licenses and ID’s.