Profile Pictures not showing in WordPress Media Library

Hello all,

Recently the User Registration changed the file upload and profile images directory and started placing them in sub folders i.e.
wp-content/uploads/user_registration_uploads/profile-pictures

This all works fine, however these images are not shown in the WordPress Media Library. Instead only a placeholder image is a docuemnt is shown.

When you visit the URL of the image directly, such as
https://xxxxxx.com/wp-content/uploads/user_registration_uploads/profile-pictures/image-test.jpg the image shows up without issues.

I checked the obvious things like folder permissions (755) and file (644), and .htaccess files etc

So the problem only seems to be inside the WordPress Media Library.

Does anyone have nay thoughts on this?