Thank you eskimo!
I am grateful to have your help on this issue and also sorry to have wasted your time.
It turns out your code snippet works like a charm on iOS 16 and iPadOS 16 apps as long as I am using a USB-C connector NOT lightning
I had to go back and re-read the release announcement here: https://support.apple.com/guide/deployment/intro-to-smart-card-integration-depd0b888248/1/web/1.0
I realized that two things need to be in place to get the native smartcard support on iOS/iPadOS 16 devices:
CCID-compliant smartcard reader
USB-C connection
Once I got my hands on a 10th gen iPad with a USB-C port, I was able to use my Yubikey 5Ci USB-C connector and the example snippet you provided worked like a charm!
It is my understanding that as long as you use a CCID-compliant USB-C smartcard reader then the PIV identities on the Token will be placed onto the iOS keychain and available for my app to query using SecItemCopyMatching
The list() helper function was really nice for debugging as well.
Hope my post can help some future devs who may be confused about the iOS 16 smartcard support.
Cheers to eskimo the GOAT!