This just occurred for me (Jan 2024) and all the images were showing as there.
So I closed that browser window in Safari, opened a 'New Private Window', logged in, and checked all the screenshots.
One of them was showing as grey (still processing) so I deleted and replaced it, I was then able to continue and submit the app update.
So it's clearly a caching issue in the web app, opening a new clean (private) browser window showed the correct/real state of the screenshots.
Topic:
App Store Distribution & Marketing
SubTopic:
App Store Connect
Tags: