Message threads not loading with iOS 26

When setting up the iPhone 17 my text message history is not showing up in the messages app fully. All messages are saved in iCloud and I could see the numbers reflected but the threads are not populating. For example I have to search a contact in the contacts app in order to see old messages. The thread will then appear in the messages app but it disappears from the list when I close the app.

this doesn’t make sense since all is saved in the cloud. I’ve tried syncing and restoring and even erasing the phone and no fix. This is a search nightmare. What is the fix for the message threads to populate ?