I came here because I am also experiencing this issue. I got my iPhone 12 Max Pro on Friday, and I immediately noticed this issue. I tried for an hour to get it to focus up close like I have been used to doing with every iPhone going back as far as I remember. No luck. I am running 14.2 so no, the latest iOS does NOT fix the issue. This is a very real issue, and for people who love macro photography, it is a big deal. If you don't care, then no need to chime in 100 times like DexBell does.
So there are three possibilities:
1. The camera just does not have the same minimum focal distance that all previous iPhones do.
While possible, I just don't see Apple regressing this badly in this key area of photography. Especially because the main point Apple makes about the 12 Pro iPhones, is the camera. So this seems unlikely. The iPhone has always been better than most other phones at macro photography, and I always figured it was because Apple cares about it, so I doubt Apple would regress, like I said.
Also, the larger sensor should have no effect on minimum focus distance, other than make the focal depth of field narrower. Large sensors have a shallower depth of field. This is why DSLRs are able to blur the background without resorting to software depth blur for portraits etc. But the change in sensor size is not enough to have a huge effect here, it would just narrow slightly. And it should still be able to focus to the same actual minimum distance, no laws of physics would be violated here, it just depends what compromises the designers are willing to live with.
IF it turns out to be the case that Apple regressed here and decided not to implement the same minimum focus distance, I will be returning my 12 Pro Max, and sticking with the 11 Pro Max. It is this serious of an issue to me. I will be going to an Apple store to find out this weekend. I will report what happens here.
2. It is a software issue.
It can be hard as the end consumer, to know what is the underlying cause of an issue, hardware or software. Hopefully a trip to the Apple store can shed some light.
If it is software, then I potentially should be able to find Pros that do not have this issue at the Apple store... it depends on how prevalent this bug is, if it is software.
This is my great hope. It seems that some people have iPhone Pros that do not have this issue, but it is hard to tell, when I cannot see how they are taking their photo, and how far away they were, etc. If it is a software issue then all will be fine eventually, once Apple gets the kinks worked out.
However, there is a very narrow window for me for Apple to fix this, as I am in the upgrade program. I only have 14 days to decide if I want to return the 12 Pro Max or not. I'm crossing my fingers that this is solvable, and not "by design"... as it is a major regression, in my opinion.
3. It is a hardware issue.
Maybe not all iPhones have this issue due to it being a hardware problem though. This is why it is hard to know, as the end user, which is the cause of an issue. I am going to compare many iPhone pros at the Apple store, and see if it is consistent or not, and see what the genius says. If it is hardware, this would be a win, because it is simple to just exchange the iPhone, and all is fine for me. These things happen.
It is a gamble, do I wait, and hope it is software, and that Apple will eventually fix it? Risking being stuck with an iPhone I dislike for the next year. Or do I return the 12 Pro Max entirely. I'm not sure which I will do at this point, I am hoping a visit to the Apple store will help.
I will report back after this weekend visit to the store.