Agree with you completely. It sounds literal...until this:
‘The city will never again be uprooted or demolished.”’
Nothing on this earth is everlasting. Peter reveals that this world will be destroyed by intense heat. The only way the city Jeremiah foresaw could be eternal is if it’s the New Jerusalem spoken of in Revelation.
2 Peter 3:10
[ A New Heaven and Earth ] But the day of the Lord will come like a thief, in which the heavens will pass away with a roar and the elements will be destroyed with intense heat, and the earth and its works will be burned up.
I see your point, however, why isn’t Peter’s prophecy figurative? I see this one verse used to “disprove” old testament prophecy as figurative, but no one ever questions if Peter was figurative and not literal..
Ezekiel 37 says the new temple will be in Jerusalem forever. I guess God will work out how Peter’s vision of the future aligns with the mountains of prophecy about Jerusalem
Ezekiel 37:26-28
26 I will make a covenant of peace with them; it will be an everlasting covenant. I will establish them and increase their numbers, and I will put my sanctuary among them forever. 27 My dwelling place will be with them; I will be their God, and they will be my people. 28 Then the nations will know that I the Lord make Israel holy, when my sanctuary is among them forever.’”