Only if you're being arrested. If you're at a traffic stop or tons of other scenarios would never need to.

It's normal for police at a traffic stop to take your license back to their car while they write a ticket or whatever. Until laws change, having your only license on your phone means handing your phone to an officer until they are satisfied they no longer need it.

States that have implemented mobile drivers licenses are starting to issue handheld readers to police officers, precisely so what you describe doesn't happen.

The people building this know nobody wants to hand their phone over to the police.

Police sometimes confiscate licenses (rightly or wrongly).

Having your license confiscated when it doubles as your wallet, MFA device for work, and primary communications device sounds like a disaster.

You make a good point.

In principle the police Wallet reader could have a function to virtually suspend the license, instead of physically confiscating your phone.

I wonder if they thought of that, and I wonder if police would use the option or confiscate the phone anyway.

Surely police would never say their reader is broken and never make it your problem

Yeah that’s why OP said he wouldn’t hand his phone over. Implying he prefers a physical one.