Most small cameras, including those in every generation of iPhone, may exhibit some form of flare at the edge of the frame when capturing an image with out-of-scene light sources. This can happen when a light source is positioned at an angle (usually just outside the field of view) so that it causes a reflection off the surfaces inside the camera module and onto the camera sensor. Moving the camera slightly to change the position at which the bright light is entering the lens, or shielding the lens with your hand, should minimize or eliminate the effect.
It’s “You’re holding it wrong.” 2.0.
The backlash about the comment is less severe this time though because the huge issue over the camera, quite frankly, is lens flare. Every camera has lens flare.