Chosen Solution
I recently dropped my iPhone and the back cracked forming a little rectangle around my back camera unit. My back-facing camera doesn’t work when using the camera app. However, when I use the camera via the Instagram app it works but it is zoomed in.
There are two camera sensors in the rear camera assembly. Do into the camera app and switch between modes while holding your finger over one or the other then try the same in instagram. I’m wondering if instagram uses a different sensor. If you confirm the camera is damaged then you can get it replaced however you may lose FaceID if you or a third party replaces it as demonstrated in this video: https://www.youtube.com/watch?v=Apny-yVr… Mind you this is a shady business practice by apple that we’re trying to fight against called Right to Repair.