I have an ipad, 16.5, and contacts does not work for airdrop. I have to use everyone. This problem started about a year ago.

AirDrop is an integral element of iOS/iPadOS.

You may find it necessary to reset your iPad settings. While this reset will not cause any loss of data, as a precaution, it is always wise to ensure that you have a current iCloud or iTunes backup before performing the reset:

How to back up your iPhone, iPad, and iPod touch - Apple Support

When you are happy to proceed, you can perform the reset from iPad settings:

Settings > General > Transfer or Reset iPad > Reset > Reset All Settings

If the problem still doesn’t clear, you would be best advised to seek assistance directly from Apple Support. You can contact the Support Team using the Support link at top-right or bottom-left of this page. Alternatively and perhaps easier, you can initiate and manage your support cases using the excellent Apple Support App. If not already installed on your iPad, the App can be downloaded from the App Store:

https://apps.apple.com/app/apple-support/id1130498044

You might also visit the Genius Bar at your local Apple Store or Apple Authorised Service Provider (AASP) - where the technicians will be able to test and assess your iPad:

Genius Bar Reservation and Apple Support Options - Apple

Assuming that whoever you are attempting to send an item using AirDrop is an Apple device user, the recipient must either:

a) explicitly add you to their Contacts - and set AirDrop to receive from Contacts Only

b) enable receiving via AirDrop for Everyone. This setting is only active for 10 minutes - after which the setting, by design, automatically cancelled*.

Settings > General > AirDrop

(*) This functional change was introduced with in iOS/iPadOS16 - as a privacy enhancement - to prevent receipt of unwanted/unsolicited material:

How to use AirDrop on your iPhone or iPad - Apple Support