Why Photo ...

MourningStar said:

... does not appear in Settings?
.

It appears that it can only show a Microsoft Accout profile photo. You (and I) have local accounts, and we just get the default user logo.

I have never found anywhere on the web a screenshot of that Settings banner with a photo for a Local Account - but there are plenty of examples of photos for Microsoft accounts, such as this one.......

I have the generic picture too, I suppose it`s normal, doesn`t matter to me.

In fact, my header completely disappeared from the Z170, it was gone. I was like Yay, but then it came back with the LCU. Still scratching my head on that one

But like your picture, Grogu shows up in My Info

Local account works for me.

Edit: Interestingly the custom user profile photo does not appear here once applied.

%ProgramData%\Microsoft\User Account Pictures

Change Default Account Picture in Windows 10

AddRAM said:

I have the generic picture too, I suppose it`s normal,

It just another subtle way of MS trying to persuade users to use MS account instead.