Apple sort of brought Live Wallpaper back in iOS 17 but as of 17.0.1, it doesn't seem to be backwards compatible. Old Live Photos don't work on the Lock Screen. It is unclear at this point if this is intended or a bug.
Good news is that old Live Photos work as Live Stickers in iOS 17! Woo Hoo! Here is a quick video tutorial on how to create a Live Photo from a video and create a Live Sticker. Enjoy!