"Kirk Weddle, who shot the image, told the Guardian in 2019: “I’m still in contact with Spencer. I used to think, ‘Man, when that kid is 16 he’s gonna hate my guts!’ He doesn’t, but he’s conflicted about the picture. He feels that everybody made money off it and he didn’t. I think he deserves something. But it’s always the record labels that make the money.”
That doesnt seem entirely unreasonable to me. Albeit it was his parents who put him in that position (ahem) it doesn't seem unfair that in his later life he's decided to look for a bob or two from the use of his image.
An out of court settlement for a more modest amount would see to be reasonable outcome for all involved surely ?