Live Wallpaper not working iPhone 7+

Did you set up the "Live" display option when you created the wallpaper:

Move the image and choose a display option

Drag to move the image. Or pinch to zoom in and out, so the image fits the screen.

Some images might not move and scale.

You can choose Perspective, so the wallpaper moves as you tilt your screen. Or you can choose Still, so the wallpaper doesn't move. The Perspective display option isn't available when Reduce Motion is on or when Low Power Mode is on.

If you have iPhone 6s or later and you used a Live Photo, you can choose Live. When you press firmly on the screen, the Lock screen wallpaper animates.

You need an iPhone 6s or later to use Live Photo and Live wallpaper.

Here is the support article for the snippet above: Change your iPhone wallpaper - Apple Support

Cheers,

GB

OK, so when you go to Settings>Wallpaper, and tap on the Wallpaper screen, you are indicating that you see "Live Photo" selected, and not Still or Perspective?

Have you tried a different Live Photo?

GB