It seems they will not heal you unless you eat first are fully sated (watch for the popup) then use your wraps/potions and they start healing. But you must be in the sated state. I assume this is a bug?
I have a private server, I use Pippi, Quality of Life, Less Building placement restrictions, Pickup/Unlock +, Kerozards Paragon Leveling, Shadows of Skelos Vol 2 and Extended, Dudes Delightful Decorations, Sand and Stone1.0.1, Fashionist. I am running the new Savage Lands map mod.
Having this same issue on our private modded server but only with female characters. Logging out and back in helps “reset” and they work afterwards, or using Pippi to fill a players health works to reset them as well. Doesn’t seem to happen to male player characters.