Probably because the screen is 1080 (I don't even think it's that high of a resolution?).
Why would you want to do that if it's higher than the resolution of the screen?
Google uses the standard H264 for YouTube videos up to 1080p, but uses their own VP9 for 4K. Apple does support VP9 starting in iOS 14 but only for devices with the A12 chip or later.
So iPhone XS and newer, and iPads with A12 or newer do support YouTube 4K.
It used to be capped on Android as well, it was only recently they decided to allow all devices to pick whatever resolution they want.
Wasn't the case for me on a couple of older devices. It was only officially rolled out last year: https://m.gsmarena.com/youtube_for_android_showing_4k_playback_option_for_some_users-news-47842.php