Weird. You’d reckon Apple would do its best to promote an iPhone’s capability with its own video chat software.
Why didn’t Apple announce this with the iOS14.2 update? Turns out the iPhone 8 & any newer model now does FaceTime calls at 1080p resolution.
This addition was not included in the notes issued with the iOS 14.2 update.
https://www.macrumors.com/2020/12/02/apple-adds-facetime-hd-1080p-iphone-8-later/