Your lan and wan are overlappng and the overall configuration is invalid here...
as a result, your wireguard config is also invalid since it is in an overlapping subnet.
There are many other major issues with your config.
Can you please describe why you are using /16 (and larger) networks? What is the actual goal here -- is this intended to be a road-warrior type configuration? What is the upstream subnet (both the IP address and subnet mask or CIDR of the upstream router)?
Also, I'm not so certain that it is able to connect. Wireguard will appear to connect on a phone or other device, but it doesn't mean that there has been a successful handshake.
For that, you would need to look at the output of:
wg show
But that is irrelevant at the moment because the configuration of this device has major issues. We'll need to understand your goals and the upstream configuration first... then we can help you fix it. (pro-tip: we'll probably suggest that you reset to defaults as it is the fastest way to fix the problems).
The /16 is just so I can have group devices based on type or person. There are less than 254 (2^8-2) devices overall, and it's just to make mapping easier to me. As an example, devices like home automation (lights) and TV's are on 4.x, with gaming systems being on 47.x. Home server and VM's are 200.x. So it's not like I'm abusing my router with thousands upon thousands of clients.
This is the main router and connects to the modem/router (FIOS).
If that's the case, you can fit everything into a /24 network.
If you want to use a /16 (which is just not necessary), you'll need to ensure that use an entirely different range for your upstream vs your lan vs your wg networks.
The connection to FIOS is on the WAN port with that IP address. It's akin to getting a dynamic IP from a cable modem. The WAN port is treated as a WAN port and not as a 5th LAN port switch. Just to point that out. Other routers on the network are set to treat it like a LAN port though. Just not the main router.
As far as I know, it's separate from the main LAN, so is its own LAN. Which just jogged my memory of something. It's why the gateway has to be 1.1, as the FIOS is probably that, with the router's client IP being 254.2.
So then that part of the config shouldn't be an issue.
It has been stated multiple times -- your subnets overlap since you seem to want to use a /16.
Your config is invalid as shown and it will never work unless you use (as @mk24 stated) addresses in the 10.0.0.0/8 or 172.16.0.0/12 blocks for either or both the OpenWrt lan and the wireguard interfaces.
You don't need to use the wan port on the OpenWrt router -- by properly assigning the lan, you can avoid needing 3 unique subnets and reduce that to just two.
Well, fundamentally, your lan and wan (and wireguard) interfaces overlap, so all bets are off. However, you've stated that your FIOS router is 192.168.0.1, but then your wan gateway address is set to 192.168.1.1 -- this means one or the other (or both) are wrong.
Basically you should simply reset your OpenWrt router to defaults and start over... you've only shown us some snippets of the config, and most of what you've shown is wrong.... easier to simply start over.
No. Main router (OpenWRT) is 192.168.0.1. Connection to FIOS (WAN port) is 192.168.254.2, with FIOS router being 192.168.1.1 (on the WAN/FIOS side, not the router side). WAN port is the client to the FIOS router. I recall having issues when trying to get the FIOS router to be anything except 192.168.1.1. But since I have it sending everything (DMZ) to 192.168.254.2 (ie, main router), it's as though it's a passthrough. There are a couple of devices connected to it (FIOS) wirelessly, but they're not on the main network since they are connected to the FIOS router directly.
Under the br-bridge, lan[1-4] are there, but 'wan' isn't. If it was, I'm sure the FIOS router and the main router would be fighting.
So moving WG to 172.16.0.0/16 (I know you said /12, but I'd rather keep it simple so /16). When adding peers, would I use /16 for them too, or /24 or /32?