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ID.me will not accept photos taken in the Live photo mode. To upload a photo from your iPhone, you’ll need to temporarily adjust your settings.
When Live photo mode is on, it will look like this:
To temporarily turn off Live mode, tap the icon on the upper right corner of your camera. You should see an indicator that Live Mode is off. This will allow the picture to be taken in a JPEG format and can be uploaded into the ID.me platform. You can switch this setting to live mode once you've completed the process.