I found a workaround which has stuck with me for over a week now - I am posting it here in the hopes that it helps some of the others too - all the best:
- Go to Settings > Wallpaper > Add New Wallpaper and then choose Photos
- Find the photo you would like to be on the lock screen (I chose the one I had on my lock screen before this glitch started)
- Tap Add on the top right and on the prompt that pops up, choose Customize Home Screen and then choose Photos from the options at the bottom and choose the photo you want on your home screen (again, I chose the one I had on my home screen before this glitch started)
- Tap Done on the top right and Done again
- Get out of Settings and you should now have the old setup back!
Lock your phone and then hard press on the home screen - as your phone wakes up you should now see various wallpaper options and if you want, you can actually flick away the options you don't want - one can actually create myriad combos now!
Hope it works for you!