We got her passport back promptly. Timeline:
1/23/2023: Mailed package to IRS ITIN processing center in Austin Texas via USPS certified mail. Package included Form 1040 married filing jointly (With my SSN as primary, and her SSN/ITIN field blank), a statement that we are making an election under IRC 6013(g) to treat my wife as a resident alien for the purpose of our U.S. tax return, Form W-7 applying for ITIN, and her foreign passport.
1/27/2023: Package received and signed for by IRS Austin.
3/8/2023: Received Notice CP565, dated 3/3, assigning my wife an ITIN.
3/13/2023: Received Notice 14433 Return of Documents and her passport back.
4/6/2023: IRS transcripts showed our Form 1040 was posted. Refund was approved and scheduled to go out on 4/13.