This is a bug even today, on iOS 18.0.
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I'm seeing very similar problems. However I am manually putting together a video from photos in an album, so it's even weirder, given I have full control over the order of frames.
I truly believe you are right. Either the block parameter should be marked @Sendable on Apple's side, or the function should be nonisolated. This has probably been overlooked.
I have the same issue, immense memory leak that didn't happen before. (only on iOS 14)