Remove Background not working

I am encountering a bug with the Remove Background feature in Photoshop version 27.2.0.

When I perform this action, the result is exactly as shown in the video. The same issue occurs even when I use Select Subject. This happens despite the image being very simple to process, featuring a plain white background with the subject clearly standing out.
Is anyone else facing this issue? Any advice on how to resolve it would be appreciated.