Thanks Tom but this is what I now have and still if I run doas service netif restart then it toggles network connectivity. On first boot I have no network access but restarting netif gives me network access and the lagg works perfectly switching between re1 and wlan0 if I pull the lan cable. But if I then restart netif if all fails until I restart netif again.

/etc/rc.conf

# WiFi
ifconfig_re1="up"
ifconfig_re1="ether *:*:*:*:*:*"
wlans_iwlwifi0="wlan0"
ifconfig_wlan0="WPA"
cloned_interfaces="lagg0"
ifconfig_lagg0="up laggproto failover laggport re1 laggport wlan0 DHCP"
PS I've hidden re1 MAC address but I have it entered correctly.