I resolved the issue on my end – and hopefully this can help a few others out…
I had the plug in “WP Smush.it” installed to reduce image file sizes. I disabled the plugin and everything is working fine now.
I would disable WP Smush.it if you have it – if not I think it would be worth while looking to see if you have any plug ins that may be related to media uploads and disable them as well to see if that is the issue.
Good luck!