Quick answer: Switch SpriteRenderer Material to Sprite-Lit-Default. Add normal map via Sprite Editor secondary textures.

Place Light2D in scene. Sprite stays uniformly lit. Sprite-Default shader doesn’t sample 2D lights at all.

The Fix

SpriteRenderer:
  Material:           Sprite-Lit-Default

Sprite asset (Sprite Editor):
  Secondary Textures:
    Name:             _NormalMap
    Texture:          MyNormalMap

URP 2D Renderer asset (in Quality):
  Light Blend Styles: Multiply / Additive (4 slots)

Sprite-Lit-Default reads the lights via the renderer asset's Light Blend Styles. Normal map adds proper directional shading.

Verifying

Place Light2D near sprite. Visible illumination, falloff. Without lit shader: flat regardless.

“Lit material. Normal map. Lights apply.”

Related Issues

For Render Objects feature, see Render Objects. For URP feature order, see order.

Lit material. Lights flow.