OK found the solutions.
The plugin was installed along with WP User Avatar plugin.
The WP User Avatar plugin has a setting where you can limit the size file of the image uploaded to the wordpress that can be used as an Avatar.
This limit also effects the Imsanity, prior to Imsanity and does not let the user upload images anywhere else on the website tha are larger than the size set on the wp user avatar plugin.
In a few words, disable the size limit setting on the wp user avatar and the imsanity will work.
