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FWIW, I went back and did what someone in this thread was counterintuitive – I turned ON "Show Content in Search" and "Suggest App" for all the ones I had turned off previously. My search started speeding up! So it went from 5 seconds to less than 1 second. Still not instantaneous, but finally a move in the right direction. I was not willing to spend all the time resetting my settings as some have done.
 
Found this on another threat: "Would be great if someone with the issue could test: simply enable content search for all your apps - you won't lose a thing and may fix it."

It worked! I disabled the spotlight settings for all Apps individually - going from app to app within the Siri & Spotlight settings. And then I ENABLED it again on all spotlight apps - like other suggested here as well.

So you do not need to reset all settings.

You might think spotlight should be slower then, but it actually became FASTER, nearly instant. So (re-)enabling spotlight search settings for -all- Apps basically FIXED the problem. So it seems to be a bug and not related to the amount of data that has to be indexed. I got 425 apps on my phone and 200GB of data. It took me 2 hours. Still, better than having to reset all settings.

Please, spread these news. Since the bug was driving me crazy (iPhone 14 Pro, iOS 16.1.)
 
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Updating to iOS 16.4 from 16.3.x appears to have resolved this issue for me.... or the restart alone had something to do with it since I had just been disabling Siri content search, suggestions, etc. at the top level and at the app level for data heavy apps like Mail, Photos, Maps, all Google apps, etc. I can't believe it's INSTANT again! No lag at all. I've had this issue for months. I recall it starting right after an iOS update. Just to be clear, I have not re-enable content search for any of the apps I disabled. I might try it.
 
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