Unable to Edit Portrait Photos Received via AirDrop on iOS

I used to be able to receive portrait photos clicked on another iPhone via AirDrop and edit them on my device, including adjusting the blur effect, applying portrait filters, and making other edits. However, after updating to the latest iOS version, I no longer have the ability to edit these photos the same way.

I want to know if this is a new limitation with the iOS update or if there's something in the settings I need to change to restore this functionality.

Has anyone else experienced this, and if so, what can be done to fix it?