Facetime Live Photos not saving on Mac

I've been taking facetime photos during calls with my friend and it will show the notification that the photo was taken but then it doesn't seem to save the photo anywhere! This is an issue on my side as well as my friends. Has anyone had this issue?? It's beyond frustrating.

My mac is running macOS Tahoe 26.0.1 and my friend's is running macOS Monterey 12.7. We both have facetime live photos enabled and have storage for the photos to save. Please help!