Apple's acknowledged that the blacked-out portions in images taken from the iPhone 17 Air and iPhone 17 Pro Max are rare. And, thankfully, they have a fix.

The new iPhone 17 Air and iPhone 17 Pro Max have a very rare issue where, when you take pictures in the presence of an extremely bright LED Light display, there are some blacked-out portions and such things.
This was first noticed and brought to light by CNN Underscored's Henry T. Casey, as he took the new iPhones for a test.
I also noticed an odd imaging problem at this concert, where one out of every 10 or so photos taken on the iPhone Air and iPhone 17 Pro Max have small blacked-out portions, including boxes and parts of white squiggles from the big LED board behind the band.
Thankfully, an Apple spokesperson confirmed that it is "something that can happen in very rare cases when an LED light display is extremely bright and shining directly into the camera. Apple has identified a fix and will be releasing it in an upcoming software update."
The iPhone 17 Air, iPhone 17, 17 Pro, and Pro Max will go on sale today, Friday, September 19th. If you were planning on getting the new iPhone on day one, make sure to install the latest updates to ensure there are no issues, bugs, or glitches like the camera one.