Unable to delete a photo on the iPhone

I have this peculiar problem where I can not delete one particular photo on my iPhone. In the Photos Library, I can select the corresponding thumbnail, but the trash icon is always greyed out. Few observations:

* The photo in question was saved from a text message, sent to me.

* The photo was deleted in the corresponding message history.

* The photo is a live image.

* I can change live image to a loop, long exposure, etc.

* But otherwise, the photo is not editable, except its duplicate.

* I can duplicate the photo and delete the duplicates, but not the original.

* I do not use iCloud to store photos (it's turned off, except for contacts).

* I do not sync photos with the Mac.

* Currently on iOS 17.4, but had the same issue on the previous version.

* Rebooting the phone does not fix the problem.

* I have backed up the phone, reset to factory settings, restored the phone, but the issue persists.

* When I connect iPhone to a Windows machine, and browse the photos in Windows Explorer, the problematic photo does not show up on the list (whereas all the others do).

Internet searches yielded no results. Most of them are useless AI generated SEO articles suggesting the same generic thing (turn off iCloud, turn off photo syncing), but none of that apply to my situation.

I'm at a loss. Has anyone experienced something like this?