Please check the status line in Photos below the "All Photos" view. Does it say "Restoring from iCloud" or similar, as shown in the first screenshot below the OP? Then the Photos Library cannot be updated properly for Sequoia. It may be on an unsupported volume or in a synced folder, like the Desktop or Documents, or contain media that cannot be processed. Check the location of your library, like Matti Haveri recommended (Move your Photos library to save space on your Mac - Apple Support), and check, what the status line is telling you (Check the status of your library in Photos for macOS - Apple Support)
When I am seeing an endless "Restoring" for days for my iCloud Photos Library, I am starting over with a new, empty photos library in my Pictures folder and let the photos download from iCloud to this library. It is the fastest and easiest way to rebuild a Photos Library and to ensure that only items compatible with iCloud and the current version of Photos are in this library. I am keeping a copy of the old library on an external drive, so I can recover items that are missing from the new library, because they might not have been uploaded to iCloud. Also the projects are not syncing with iCloud and I may need to look up missing face names.