Image upload error and images are too large, size selector missing

When uploading images, I sometimes get a red error and this freezes the screen. Now, when uploading an image, there is no Size choice anymore. The choices used to be thumbnail, medium and large. My only choice is large and now all the photos upload extra, extra large at 2322 x 4128 for example. Then,,, it takes forever to upload if at all!
If and when it does upload, I then need to resize it down.

This is causing a lot of difficulties to work.
So, the size selector under Attachment Display Settings is missing the choice of medium or thumbnail.
Images upload too large now and never did before when selecting full size.
Images upload and freeze screen.
And I often get a red error.

My host has me at largest setting for images.
Is this an error/bug involving the update of wordpress 4.2.3 and the version just before it?

I need ideas how to fix this asap in order to work.

My site is https://www.housekaboodle.com/