The LM358 is not a rail-to-rail opamp, so when we see that U3 has very different inputs such that it's output should be saturated, we can reasonably take 10.63 volts as the max positive output with +-12 volt supplies. That being the case, the +10.28 output of U1 suggests that it may also be saturated. But the real circuit and LTspice simulation show that the AC input is producing some AC output. The LTspice waveform is clipped on the positive portion of the waveform. I take the fact that the U1 output voltage is apparently at the rail, and the clipped AC output waveform as indicating that U1 is saturated. So, it would seem that the whole circuit is latched up.I decided to test this circuit on the breadboard using LM358 and dual supply +/-12V
I use this schematic (DC voltage measured in a real circuit )
View attachment 243614
And the output voltage on the scope for Vin = 5VDC + 1Vp (1Khz)
View attachment 243615
The similar things we can see on LTspice
View attachment 243616
Maybe it is a DC stable now. But on the bench, after swapping the inputs circuit start to oscillate (Fosc = 14Khz).
As we can see on the scope:
View attachment 243617
Something else that is probably affecting the various DC voltages is the fact that real opamps like the LM358 can draw current at the inputs when the opamp is saturated, and also when the input common mode range is exceeded.