Why did my iPhone 13 Mini camera stop working?

About 1 year after I bought my new iPhone 13 Mini, the main camera stopped working when using the Camera app. The selfie camera works, but the Camera app freezes when the main camera module is selected.

I didn't have a chance to get to an Apple Store for several months, so now my device is well outside its 1-year hardware warranty. I took the time to backup and reset my device, have Apple run remote diagnostics, and finally run diagnostics in the store with the help of a Genius. According to Apple's own diagnostics, my camera module and the rest of my device is functioning normally. It is also running the latest iOS. It still doesn't work. The only solution I was offered was to replace the camera module for something like $170 to "try" and see if that would fix it, or upgrade my device (....?).

I went home and installed a third-party camera app (Halide), which immediately allowed me to use my camera! Why does the third-party camera app work while the default, Apple Camera app does not?