Look at the following specific instruction to add and assign a photo to a iPhone contact in iOS.
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From the Contacts App, tap on the targeted Contact you want to add an avatar photo to.
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Tap on “Edit” button at the top left conner.
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Tap on Add Photo, you then are able to select an existing photo or take a new photo to assign to the contact.
Done! You have just created successfully an avatar photo for a contact on your iPhone 