Ever since updating to iOS 26, local finding of AirTags is not working at all for me. Here's what I see with a brand new AirTag, standing literally right next to the item. It's the same with the other AirTag I own. I can see them on the map, I can make them play alerts, but this feature is broken like 90% of the time. I had it work briefly after restarting the phone, but it keeps going back to this later:

