Hi there
Please try this
Toggle Short Name Settings: Go to Settings > Contacts, and try toggling off Short Name and Nicknames, then test it out.
Reset Announce Messages: Navigate to Settings > Notifications > Announce Notifications (or Announce Messages), turn the feature completely off, restart your iPhone, and then turn it back on.
Check Contact Details: Some users have found that deleting and re-adding an affected contact or removing special characters/abbreviations in names helps Siri read them correctly.
Accept iCloud Terms & Conditions: Go to your main Settings profile at the top to ensure there are no pending iCloud terms updates blocking background Siri and account sync features.