That looks good-- you've covered most of the things I first think of. I had missed that you'd already tried Safe Mode.
An external drive sits outside the Mac's case, and it would be connected by a cable. The reason that I asked about that is that sometimes people keep their Photos Library on an external drive that is improperly formatted, and it messes things up.
Is your Photos Library in the Pictures folder? I'm asking because sometimes people move it to iCloud Drive, for instance, where it cannot work. That cloud symbol seems to indicate that a connection to iCloud is not working, but if your don't have "Optimize" turned on, and the Library is properly in the Pictures folder, I'm not sure why that's there.
When you look at System Settings>AppleID>iCloud, do you have more than 10% free storage in iCloud?
When you look at System Settings>General>Storage, do you have more than 10% free storage on your Mac?
The screenshot looks like the picture is in Edit Mode-- is that right? Can you edit the picture, change brightness, etc?
It looks like Photos may have lost the connection to the original image files. In Photos's Settings>General

is "Use as System Photos Library" grayed out, as it should be? Is "Copy Items" checked, as it should be?
I'm sure we're narrowing it down-- let us know what you find…