I just wanted to give everyone here an update. Thank you all for contributing to this thread. Because I had insurance, Verizon sent me a refurbished iPhone 7 and I activated it yesterday. I checked the model number and it's exactly the same as my old phone. The serial numbers and IMEI numbers were very close too. This morning when I registered the refurbished phone with Apple it was confirmed it is the older model made in 2017. With software 12.4 installed the speaker icon was not grayed out and the phone works perfectly.
It's just my guess that, yes, there is some kind of connection that gets loose over time and renders the speaker useless. Furthermore, I read that "loop disease" in its advanced stage will only display the Apple logo and will not allow phone access. This happened to me a few times and even after powering off and on my phone I could not get access to my phone. Because my refurbished phone hasn't been used yet (it's in flawless condition without scratches) it hasn't been stressed yet. Maybe this issue is similar to the bending iPads. Even so, Apple still needs to acknowledge this problem and replace any and all iPhone 7's that are having this problem.
For some of you perhaps, spending $800 is just a matter of 0's & 1's. For hard working people to save up for and to spend $800 on an iPhone and have it work only a couple of years before it needs upgrading is appalling. Like I said before, my hard earned money means nothing to Apple. I mean nothing to Apple.
Glad it worked out for you. Yes, I know for me personally, I'm done spending $1000+ on iPhones.