They do the same in Munich- on phone aswell as at the Apple shop. It makes me furious that they are either so dull to not see the watercolor effect or even worse that they pretend to see nothing. How can you argue with someone who keeps saying there's nothing there.
It did find a way around it using the Adobe Lightroom App which is a lot more cumbersome than the iPhone camera app, but it does make a big difference.
In iPhone Camera Settings - set to "Keep originals". (Not optimize for storage).
In Lightroom App- set the foto quality to DNG.
Obviously this only works for Lightroom users. I tried it with the camera+ App (highest quality) and had the same ugly results as with the apple camera app.
The pics taken in the Lightroom App have a nice fine grain rather than blotchy smeary colors- especially with skin tones.
I can't believe those big "shot on iPhone" posters are really shot using an iPhone.