People tend to think of this as horrible discriminating decisions made by some horrible people, but most likely it is a very cheap machine developed by an intern who had 3 days to make something work...
Trivially fixable even in that fairly inexcusable case: add an override button. "by overriding you accept that this photo may ultimately be rejected for passport use."
The booth is asking the user to “touch an option” but only 1 option is visible, the option to retake the photo has a “attempts remaining” counter and that the company logo is in the middle of the photo preview (the photo preview is in the middle of two options, which will make the company logo centred on the screen).