The iPhone 12 mini was first released 5 years ago and discontinued 2 years ago. A 94% Battery Health lies in the range of being normal to exceptional based on that time frame and Cycle Counts, and likely indicates the battery has been replaced at some point. The phone is only expected to get 500 charge cycles before the battery needs replaced when it drops below 80%. The Battery Health drop is not linear, so you should not expect a regular drop rate and it is not unusual to see no drop at all for some months and several the next month. No single drop seen in a month is what should be expected in future months.
In some cases the updated Battery Settings will not be possible if the device has not been allowed to charge to 100%. There are some that will manually try and control their battery charge by unplugging before it has reached 100% and that just delays any updates seen for Battery Health until they accidentally allow it to make a full charge where a larger drop than expected will be seen since it was not able to do it previously.
That has been true for all iOS versions and the iOS 26 update does not change your Charge Cycles which is the biggest contributor to Battery Health, besides an aftermarket battery install.