iPadOS 17 Sticker Problems.

Creation of stickers from photos is reliant upon functionality for lifting a subject from the background of a photo - this relatively new feature being available to a limited range of iPad models.

iPad models that support Live Text, Visual Look Up, and lifting a subject from the background are:

• iPad mini (5th generation and later)
• iPad (9th generation and later)
• iPad Air (3rd generation and later)
• iPad Pro 11-inch (all generations)
• iPad Pro 12.9-inch (3rd generation and later)

As such, while many more models of iPad support iPadOS17, creation of stickers from photos and screenshots is not necessarily available.

Lift a subject from the photo background on iPad - Apple Support

Make stickers from your photos on iPad - Apple Support

An iPad7 does not support lifting of a subject from a photo - and therefore does not support creation of stickers from a photo.

Not sure which iPad you have? Identify your iPad model.