Contact name appears when typing new iMessage but then only shows the phone number

I have a weird one for you and I hope you can help. I recently updated to the new iOS 16.1.1 and since then, most of my text messages display the phone number only. When I go to start a new message and type in the name of the person, it shows both the name and the associated phone number. Once I hit send, it goes back to displaying only the phone number. I’ve searched online and tried various fixes to no avail. Short of entering all my contacts manually, have any of you ever encountered this?

thanks!