Which version of macOS and iOS are you using?
Have you confirmed you have iCloud Photos
disabled on the iPhone in
Settings > [YourName] > iCloud > Photos?
If not, disable it, restart the iPhone and the Photos app on your Mac. This is of course only if you do not actually want to use it.
I only use the 'Image Capture' app which is a little different but there the option should show when you click the
icon.
If it doesn't show, it seems like you only have read but not write permissions on the iPhone which would be weird…
You could take a look just to confirm you have proper access. (And optionally import them via this app and then move the locally imported photos into the Photos app as a workaround.)
Learn how to use Image Capture on your Mac to import items from a camera, iPhone, iPad, scanner, or other device to your Mac.
support.apple.com