Same problem here. Since iOS 17.1.1 (I'm now on 17.2), AirDrop stopped working for two different contacts who can no longer see me. I can still send things to them, but I've tried everything online to no avail (verifying details in Contacts app, toggling wifi and bluetooth, restarting all devices, trying when connected to another network, resetting network settings, and on and on).
Their devices popup the "People" header when I am nearby, but don't show me as an option to click and then the whole sharing window becomes unresponsive to clicks. I am able to send them things via Airdrop (so, one way). And if my device is not in range (or has Airdrop turned off) they are successfully able to Airdrop with other contacts.
Previously with these people, Airdrop has been working for years. I was hoping an iOS update would remedy this oddity, but so far no such luck.
Please post any solutions or additional details here, and hopefully we can get this feature working again for everyone!