In iOS 26, on my iPhone 15 Pro, I could edit a picture, choose the clean up tool, circle a face and it would apply “identity protection” blurring the face.
On iOS 27, it says it’s applying the identity protection but it does nothing to the picture. We tested on a friend’s phone still running iOS 26 and it worked.
It seems this feature was broken in the upgrade. I tried restarting the Photos app and the phone and tried multiple different pictures.