Again and again same misunderstanding! First off cops don't accept Apple Wallet ID yet, not one police department has said they will accept this in place of a physical ID. Some states do have their own apps outside of Apple Wallet, they scan a QR code and read it on their handheld. Only TSA has committed to Apple Wallet ID. Baby steps. Second, the TSA scans your phone's NFC, and they look at their screen for info.
You don't have to give them your phone. First off police departments haven't committed to supporting the Apple Wallet system. But in states with fully electronic IDs (not the Apple Wallet system), they have an app and they scan a QR code on the app for the info. The cop has to ensure their reader is working because you're not required to hand your phone over, those states wrote the law so that scanning QR code and looking at info on their screen is accepted ID, and you don't have to provide anything more than what is required for ID.
Yes there is the possibility people get tricked, so maybe the answer is for people to know their rights, because it's not this one system that is the only possible rights violation, people consent to search of their vehicles all the time and they don't have to unless the officer has probable cause. And your phone is a lot like your vehicle, you don't need to give it to them.