Solved KDE wallet gpg error

Running 12.1 with quarterly packages (just updated)

Error when attempting to decrypt the wallet Message recipient disconnected from message bus without replying using GPG. If you're using a SmartCard, please ensure it's inserted then try again.
GPG error was Timeout

GPG seems to work, and the keys are active. Clicking Retry or Cancel just returns the error message after a short time. Has anyone seen this before?
The solution to this is creating gpg-agent.conf in ~/.gnupg directory and adding

pinentry-program /usr/local/bin/pinentry-qt5

The issue stemmed from the fact that the default agent was terminal-based (in my case, pinentry-curses) which I prefer since I generally use pinentry on the command line and I don't like gui popups.

But this meant that when wallet was asking for a password, it was calling a CLI-only program.