Fixed: Apple has release iPad OS 16.5.1 which resolves this issue. 

An issue has been reported in the Apple user community that the Apple USB 3 Camera Adapter may not be compatible with iOS and iPadOS 16.5 in some cases. ACME Support recommends postponing any planned updates to this operating system until Apple patcheds this code. 

Workaround: We recommend to delay updating to 16.5 using or using as Wi-Fi connection until Apple addresses this hardware issue.