There is a thing we call the universe and it does what universes do. What physics does is searching for models - mostly described in the language of mathematics - that describe the universe or parts of it. Some parts of the universe are well modelled by the Navier-Stokes equations, we also call those parts of the universe water [1]. But upon closer inspection one notices that description is not perfect, one can obtain a more accurate model if one treats the water bits of the universe as a collection of an enormous number of particles, water molecules. And we can keep going, treat molecules as collections of atom, break atoms into electrons and nucleons, split the nucleons into quarks and gluons, who knows how deep the rabbit hole goes.
Maybe we will even eventually find the ultimate model, a model that describes every aspect of the world perfectly, even though it is not obviously clear how we would determine that we did not miss some aspect of the universe in our models. But even then the map would not be the territory, the model would not be the universe or a piece of it. Imagine a wave function would perfectly describe an electron, would we be justified to say that an electron is a wave function? No, because for them to be the same thing, it is not sufficient that the wave function has all the properties of the electron, it would also have to have only the properties of the electron. But the wave function is an equation, I can write it down or square it, things I can most certainly not do with the electron.
So the wave function is of course only a mathematical description of a quantum system and not a real thing out there in the universe. But that is not the problem, the problem is that we have two seemingly contradictory descriptions of quantum systems. We have the Schrödinger equation describing the unitary evolution of isolated quantum systems and it works really well. But we also have the Born rule and the collapse postulate which tell us the probability distribution of measurement outcomes and how measurement changes the state into the measured Eigenstate, a non-unitary change, and this also works really well. But there is the problem, on the one hand a measurement - whatever that exactly is - seems to change the state non-unitarily but on the other hand a quantum system together with a measurement device is just a bigger quantum system and should therefore evolve unitarily. Something has to give.
As you say, that is very unsatisfying, but it was also not a complete roadblock, shut up and calculate worked pretty well. But I would not confidently declare that this does not hold us back at all, who knows what progress can be unlocked by solving the issue? It might of course also be mostly inconsequential but I guess that is something we will only find out after the fact.
[1] Or fluids if you want to be pedantic.