Agreed, that this is an issue.
Some people do not backup with icloud.
Those who don't no longer have a clear indication that backups aren't working which seems like a HUGE no-no. "oh, my backups are months old?!?!!?!?!?" seems like a horrible surprise.
Seems like at minimum people should be given the option to permanently grant backup rights.
This is happening to me on multiple IOS devices running 16.1.1 (ipad & iphone) on a Mac running fully patched Ventura.