iphone 12 pro camera freeze

When I open the camera app, I can see a preview and I am able to press the shutter once. It doesn't actually take a photo and after the first click, the entire camera app freezes up and I lose the preview. It happens with the front camera as well.

However, I don't think this is a hardware issue as I can take video with both cameras. I can also use the camera in external apps like Snapchat and Instagram. It seems like the Apple camera app is glitching.

I've tried every option I can think of. Refreshing the app, restarting the phone, settings and factory reset. The genius bar was completely stumped. We tried a factory reset through a computer and that also did not work. All diagnostic testing on the device showed the camera as working fine. I am update to date on IOS as well.

Basically was told I can pay $200 for a camera replacement but that it might not solve the issue or it might break again.

Seems like I am the only person on any forums experiencing this...Any thoughts??