Do you still have issues here?
I've noticed that issues perhaps arise due to a large number of contacts that try to sync to a device. For my environment, around 4k contacts need to be synced from outlook to the device. I think this process is probably very inefficient now and locks the contacts, causing any other app that utilises the local contacts to lock up, perhaps due to the contacts app being in a sync update that doesn't finish.
In my environment, duplicate entries start to appear and overall causes slowness on the device and battery drain. It makes sense that WhatsApp would struggle to operate if it is locked out from the locally stored contacts.
I didn't see this issue prior to 17.2. In 17.1, apparently an issue with contacts was seen for many, Apple addressed this in 17.2, this is when I saw issues happen. Perhaps the change in 17.2 introducted new issues, relating to contact sync. In 17.2.1 I saw no improvement to the sync issue.
A rebuild of contacts does appear to work, but for some this is only a temporary fix. See MS article here to rebuild the contacts -
https://learn.microsoft.com/en-us/exchange/troubleshoot/mobile-devices/duplicate-contacts-in-ios-contacts-app