Tap Stickers in the column of options. Tap the big + button below the row of sticker apps. Next, tap Live below the image search bar, then select a Live Photo.

Alternately, you can start a new sticker from the Messages app. Tap the new Plus menu, choose Stickers, then hit New Sticker. Here, you can choose the photo you want to turn into a sticker.

Stickers are based on one of my favorite iOS 16 features, which you can use until iOS 17 is out. The tool doesn't have an official name, but lets you separate a picture's subject, like a person ...

Instagram is testing a sticker creation feature that will let users make custom stickers from their own photos — and other users’, in some cases — and pop them into Reels or Stories.