Solved. It turns out that when you create a new Entitlements.plist file, Xcode doesn't know about it even though it shows up in the project navigator until you put it's path in the code-sign entitlements section of the Build Settings. Once I did this it worked in iOS 16.
Summary: Apply for entitlement with Apple (must be developer account's owner)
Receive approval from Apple
Add entitlement to app ID (under Additional Capabilities tab)
Make sure the Provisioning Profile uses that app ID and lists the entitlement
Add a Entitlements.plist to the Xcode project and set it's path in Build Settings
Put the entitlement name in Entitlements.plist file (com.apple.developer.device-information.user-assigned-device-name Boolean YES)
Build and run the app
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I also can't get the user-assigned device name to work on iOS 16. I applied for the entitlement, and received approval, and verified the entitlement is now present in my app ID and provisioning profile, and it still doesn't extract the device name in iOS 16. It still says only "iPad".
I created the app id and provisioning profile in my developer account and included the entitlement. When I download the profile and install in Xcode on a machine running Big Sur using Xcode 13.2.1, Xcode shows that I have the entitlement in the profile when I click the little information icon next to the Provisioning Profile name in the Signing and Capabilities section. When I do the same on a machine running Monterey and Xcode 14.1, the entitlement has disappeared from the profile.
Can you help? (this is an Enterprise developer account)