How many times did you try it? I thought I remembered that it was a (high) chance to get wraps but not a guarantee. I know for a fact it worked for me, roughly a week and a half ago.
Pretty sure I also got them recently. In any case healing items are overabundant now, you can farm more than you’ll ever need from most high level enemies (al-Merayah for one).
3 times so far. It only stopped yielding Infused Wraps as of the latest Age of War update.
Irrelevant to the existence of a bug. Tortured King is the only method in Exiled Lands to receive Infused Wraps. Alternative healing options are useful, but not germane to the absence of any ability to obtain the highest efficiency bandages in the game.
I ran to the King’s Niche just now to check again, despite having harvested the wraps successfully a week and a half ago (after the Ch-3 update). I harvested 95 wraps using a starmetal pickaxe with oils on official PvE server #1728, 5 mins ago. Not a bug, just not a guaranteed harvest.