Yes, it does! When you download the ZIP file on your iPhone, it lands in the Files application. Click the ZIP file and it will be extracted to a folder. You can now see all the photos in that folder. We recommend you hit Select, then Select All, and then the Share icon and Save to Photos. Now everything from LiveWall will be stored together with your other photos, and backed up to iCloud if you have that. (This works almost the same on Android.)
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