Since the keyboard backlight worked before the screen repair and stopped working immediately afterward, I would suspect the display repair or ambient-light sensor connection before blaming the macOS update.
Apple confirms that a Mac with a backlit keyboard should have a Keyboard brightness control in System Settings and can also have “Adjust keyboard brightness in low light.” Apple also states that the light sensor is located at the top of the Mac near the camera.
Turn your Mac keyboard’s backlighting on or off
Since your screenshot shows that the normal keyboard-brightness settings are missing and the Control Center slider does not work, check Apple menu >> System Settings >> Displays. See whether Automatically adjust brightness is available.
Apple says this option depends on the Mac detecting an ambient light sensor.
Change your Mac display’s brightness
If Automatically adjust brightness is also missing, that makes the recent screen repair particularly suspicious.
The replacement display, ambient-light sensor, or its connection may not be detected correctly.
Before returning the Mac, shut it down and restart it, then test the keyboard brightness again.
If nothing changes, I would take it back to the repair shop and explain that the keyboard backlight worked before they replaced the display, but afterward the keyboard-brightness controls disappeared and the backlight no longer works.
Ask them specifically to check the ambient-light sensor and display connections and confirm that the replacement display assembly is fully compatible with your 2019 MacBook Air.
Given the timing, I would have the repair shop investigate this before reinstalling macOS or paying for another repair.