This should not be an accepted answer. The issue still persists as of Safari 14.1.1, macOS 11.4.

This fixed it for me too. Updating macOS, and it also updated Safari with that to 14.1.2 and problem seems to be gone so far.

Is there any timeframe on when this bug will be fixed? It is affecting all iOS 16 users.

Here's the link to that documentation screenshotted above: https://developer.apple.com/documentation/bundleresources/privacy_manifest_files/describing_data_use_in_privacy_manifests