Thank you AAbiGO. See this persons post for shut down restart instructions.
This does work as dumb as it sounds.
i followed your instructions and for the first time i can see my 128GB in both photos and in files.
there was a slight delay in photos then it showed the import in the bottom right of the screen. In my case it didn't find any photos.
i opened files and under my phone is a new text name called untitled.
Tap on that and you will see folders in my case called dcim. Under that folder is all my dashcam videos and they played without any caching problems.
Using the ... in top right menu i selected the file i wanted and then in the bottom of the page pressed the + symbol and the file which can be found in recents. I have no idea where it got stored. Edit- it may not have copied the file to the iPhone🤔🤔
ridiculous process to go through but a work around until Apple pulls their finger out and fixes this joke.
iPhone 8 64GB IOS 16.4
cheers.