Correct. See SC FAQ: “It would be useful if photos from Notes had GPS + viewing direction embedded in them” about reasoning for that (and link to a workaround if you’d like .jpg files to have GPS coordinates in its EXIF headers).

Images should not be deleted as long as the OSM Note remains open, but only a few days after it becomes closed. But no, they are intentionally not permanent, see SC FAQ: “Are the pictures taken with StreetComplete permanent?” (explanation also includes workarounds).

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