0.5x camera zoom feature not working on iPhone

My iPhone 13 Pro Max suddenly started having camera issues. 0.5 zoom and few other zoom options are not working. I tried all options from software upgrade to factory reset. This phone was never repaired anywhere. What actually happened to my camera? Local Apple Store says they started seeing people walking in with this issue. I am also reading this is happening to others as well. Why is Apple not fixing it. Anyone else had luck fixing it?

[Re-Titled by Moderator]