The problem is that in IOS 14 there is a third option of permission of photos and autoAcceptAlerts is clicking 'don't allow' in case of any passed argument.
Resolved with adding acceptAlertButtonSelector to the desired caps:
Java
driver.setSetting("acceptAlertButtonSelector", "**/XCUIElementTypeButton[label == 'Allow While Using App']");
Python
"acceptAlertButtonSelector": "**/XCUIElementTypeButton[label == 'Allow While Using App']"