Photobooth shows and captures mirror image.

Ok, I did a quick test, recording myself with and without "Auto Flip New Items" turned on, and it is working correctly here.

You may want to trash the preference file for Photo Booth, I hope that helps. It can't hurt.

1) Quit Photo Booth.

2) In Finder, press Command-Shift-G and paste

~/Library/Preferences/com.apple.PhotoBooth.plist

3) Drag the file out of the preferences folder; you can put it in the trash, or park it on the desktop for now

4) Start Photo Booth again, adjust the settings and see if they stick

Hey SelloutOL,

We're not noticing any issues with this on macOS Monterey 12.4, however are happy to help out.

The option you've mentioned should manage this for you. We've tested both manually flipping photos and toggling on and off Auto Flip New Items.

If you're continuing to have issues though, perhaps restart your Mac and test further.

For more info, check out: Edit photos and videos in Photo Booth on Mac - Apple Support

Take care!

Auto Flip New Items is working for me in 12.4.

Did you try selecting a photo and doing Command-F (or Edit->Flip Photo)?

That too works for me and can correct the flip/nonflip status of the image after the fact.