Face ID Not Working [Fixed. Please see the approved answer for details.]

I'm now in the same boat as everyone else. My phone got stuck in "Do Not Disturb" mode so I had to reset all settings on my iPhone 14 Pro Max running iOS 16.0.2 and 1Password 8.9.5. After the reset all apps except 1Password 8 were working. I played around endlessly with Turing off & on Face ID for 1Password, I deleted and reinstalled 1Password and reset Face ID twice. None of this helps. Oddly, I see the little green circle in the "Dynamic Island" which confirms that Face ID worked, however 1Password insists on having the master password every time. Sounds like I have the reset-the-phone-and-broke-it syndrome that everyone else is reporting..