My vote, if this were a democracy, would be to have them be FWBs in the past, it's just not active right now for whatever reason. No breakup, just more focused on other things, or not feeling it at the moment. Therefore they still have that bond and level of intimacy established, but it's not an ongoing relationship that may complicate things for players. You can also still keep the pictures, just frame them as something Jenny shares with MC as inspiration, but make it a choice "Hey MC, would you like to see some pics of Grace and I getting naughty from awhile back? She said I could show them if you were interested." Still shows all of those 1, 2, 3 goals, but avoiding the friction of an established relationship.