2023-05-31 UPDATE: Apple has released iPadOS Developer Beta 2 which resolves the charging issue. This is a good sign that the next public release of iPadOS 16 will take care of the problem. Note that the Public beta of iPadOS 16.5 does NOT solve the issue. Only the Developer Beta 2 release does. If you are considering upgrading your units to this beta version make sure you thoroughly test it on one unit in the production environment first. In order to download the developer beta the account on the iPad needs to be tied to an Apple developer account. Note that the enrolment process can take days/weeks for organizations to be approved, whereas the individual enrollment is immediate. Once you sign-in with your developer account you can follow Apple beta software device enrollment instructions.
Another option is to wait for the fix to be pushed to the Public beta which does not require a developer account to be downloaded (public beta instructions) although we don't have any information at this point as to how long this will take.
UPDATE: as of 2023-05-26 the iPadOS 16.4.1 is no longer signed by Apple and therefore the downgrade steps below no longer work.
If you are stuck on iPadOS 16.5, the only option left, while you wait for the fix from Apple, is to schedule the iPads to turn off after hours. Since the iPads will still receive charge while off. This can either be done via your MDM (preferred) or by finding the screen brightness setting which will cause the iPads to turn off. The iPads can then be woken up before business hours via a scheduled PoE power cycle.
Original post below:
Note that this bug also affect genuine Apple accessories (like the Apple camera adapter).
The only known way to resolve the issue, as of today, is to downgrade to the previous version of iPadOS. But Apple only allow downgrading iPadOS with signed releases of iPadOS. And they typically only keep the previous release signed for a few weeks or less after the new release is out.
So these steps are likely only going to work for the next week(s).
1) Get your hands on the image (IPSW) of the previous release of the iPadOS. Here is a link for the 10.2" iPad (7th gen) iPadOS 16.4.1 IPSW which is hosted by IPSW Download. Stay away from the "Download" buttons form the ads on the page and find the actual Download button by scrolling down.
2a) If your MDM allows the selection of your own file when performing DFU on iPads (JAMF lets you do that via their Configurator). Then this will be the easiest method and you can skip the rest of the steps below. But if you don't have the ability to do this via your MDM read on.
2b) Connect the iPad to you computer and open the latest version of iTunes
3) Put your iPad in Recovery mode. For the 10.2" iPad (7th gen) press and continuously hold the power button and home button until you see the recovery screen appear. For other iPads see Apple instructions.
4) Hold the Left SHIFT key on your PC (OPTION key on a Mac) and click on the Restore iPad button. Which will let you browse for the IPSW file.
The iPad will power cycle a few times during the restore process and will eventually boot up to the Welcome screen.
5) Make sure you disable Automatic updates after the downgrade. So you can wait to manually upgrade once Apple resolved the issue.