AirDrop changed big time in iOS 17, so check your iPhone settings

Disabling this feature is the same as it is for NameDrop—go into the Settings panel on your iPhone, choose General then AirDrop, and turn off Bringing Devices Together. AirDrop itself can be turned on or off from the same screen, but Proximity Sharing works independently—you can have it switched on even if AirDrop is disabled.