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“Circle to Search” screenshot selection | Credit: PiunikaWeb
In addition to the new screenshot functionality, Circle to Search looks to also be getting a slight new look to it, specifically to the handles surrounding the area that is being selected. Currently, the area selected is enclosed in rounded brackets, while the new area looks more square and with less polish. It’s possible that this isn’t a final design and just a sign that development on this feature is far from finished.

Credit: PiunikaWeb
It is unknown when this new feature for Circle to Search is planned as an update for Pixel phones. However, judging by how tweaks to existing features such as this one traditionally get rolled out, it makes sense that this would make it into a future Pixel Feature Drop. It is also a possibility that Google may want to save this as an announcement for Google I/O as an Android 15 improvement.
Either way, Circle to Search and AI seem to be where Google is spending most of its energy these days. It would make sense if Google wants to spend a little more time working to refine and add polish to this feature before rolling it out to users.
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