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It is not a design flaw and yes this is how it works.
Years ago we use to query all the photos table and scanning through for permissions etc however that is a resource hog. So really all that is done now is we query the amount of photos you want to display plus say 25 and scan through and see what people can view etc and display results. If all one can view out of those say 37 images is 9 images then thats what is going to show and you will have 3 blank squares.
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