Much like some of the other users in this thread, I’ve been experiencing the same issue. As far as the announcement calls option is concerned, it was set to Never and it always has been. I’ve never had a need for calls to be announced. They would just ring. Today my dad called while I was watching something, and there was no ringtone. I saw his call coming through via the banner at the top of the screen earlier this evening, my wife says she called twice, but my phone never rang. My silent switch is set to ring, and she’s also set up with Emergency Bypass which is on. This has happened a few times with several different contacts since this update has occurred.
Using an iPhone 16 Pro Max running iOS 26.0.1.