I just noticed this problem too when I upgrade my phone to iOS 15.3. All the usdz file I have on my phone now only display in "Object" mode but not "AR" mode. This is really big regression, please let us know when the issue is addressed.
Just a random guess, maybe somehow AR Quicklook doesn't have permission to access the camera anymore after some conventions changed with the OS update?
Topic:
App & System Services
SubTopic:
General
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