Many users and even me are also getting a screen. When I was locating an AirTag on the Apple’s find my app, the iPhone screen looks likes a blurred camera screen in the Phone background. It doesn’t appear that you can find items using an AR-style feature, so why would it say “More light required”?
Many users asking the same question while iPhone needed more light in a dark place?
Why does my iPhone need light to find my AirTag? – Answer
In my view, the Entire system uses ARKIT. It does work on augmented reality technology. So it is simple that users can’t use the camera and augmented reality in the dark!! So conclusion indicates the camera input is needed.
The flashlight must be on in a dark place because of the iPhone camera to detect which way user move (For example, optical mice does work) in conjunction with accelerometers to track users motion more accurately for precision tracking.
iPhone 12 Pro and iPhone 12 Pro Max models have the LiDAR scanner, which is more effective in the dark place. So I think these models not needed touch on and look blurred screen, one of the users says this is curious on the point or AR on finding an AirTag.
Some buffs are kidding with this iPhone message screen “More light required”?, as I inserted below.
One more thing is also that this system forces to user not to rely 100% on looking at the iPhone precision finding screen in pitch darkness looking for the lost item.
So possibly, It might be telling you that the room might be too dark to see lost things?