IP address in 169.254/16 range and flashing green light

I suspected…

Given that you are reporting no changes to your WiFi environment, there is high probability that you have a defective SDcard. These days, the only problems reported are either WiFi or SDcard, and virtually all SDcard issues stem from that bad batch in Nov-Dec 2022.

If you remove the SDcard and look at the back, it probably matches this:

I would replace the SDcard and see if it resolves your issues: