Does anybody else have dust particles (at least I think that’s what it is) stuck between the flashlight and the iPhone’s body that are glowing when the flashlight is on?

Hey there ido275,

While we can't tell from just the photo you provided, if you've already made sure this isn't due to a covering you have on your iPhone, and that it's not on the outside, then we recommend having it inspected in person by a service technician. You can review your service options by contacting Apple Support here: Get Support

Cheers!