Agreed. iPadOS 16 supports iPad (2017) with A9/2GB, but iPhone 7 (A10/2GB) doesn't work. The excuse this time from some people was the lock screen "needed" a neural engine.
Why would it needed neural engine? I guess because it can separate background from the image?
The problem with this though, is that Apple recently released iPadOS 16 to a bunch of iPads but only a couple of them supported Stage Manager. So, if they can actually pick-and-choose when it comes to different features and stuff, why not release iOS 16 to iPhone 7 without the new lock screen? Or without "blurring background" feature on it?
I'm inclined to believe that they're just ending support after 5 years no matter what. At least when it comes to iPhones.