I too have experienced this as reported in this thread:
Fortunately I’ve been able to get the IR LED setting to hold although the solution may not be available or acceptable for everyone.
Some time ago I rolled back the F/W on both the PanCam and V2 to an earlier version where the IR setting was retained after a power cycle. A fortuitous side effect of manually reverting the F/W is the .bin file stays on the SD card after the rollback so a properly working version was still there from the last time I updated and I was able to again revert both cameras back to a working version of the F/W.
My PanCam is now running F/W version 4.10.5.111 and the V2 is 4.9.5.98 and the IR LEDs are functioning as set in the App. The good news is the PanCam F/W is still available on the Wyze site so it’s available to anyone who wants to do the rollback, but the bad news is the V2 F/W is not. Later versions of the PanCam and V2 F/W may fix the problem but I can only attest to what I’ve installed.
Obviously by rolling back the F/W any subsequently added functionality will be lost so it will be a matter of what you want to live with or live without.
Note to self: Never, as in NEVER, update Wyze firmware until it’s been in the field for at least… well, let’s say forever since that seems to be how long it takes for Wyze to get the bugs out.