I’m also having this issue, however it doesn’t matter what size the image is, or extension. Theme is up to date (just did a reinstall) as is WordPress.
*EDIT*
I put the below code in functions.php, and problem was solved.
add_filter( 'wp_image_editors', 'change_graphic_lib' );
function change_graphic_lib($array) {
return array( 'WP_Image_Editor_GD', 'WP_Image_Editor_Imagick' );
}
Funny thing is, I actually tried that, and was unsuccessful. Just for giggles I downloaded and installed it again via FTP…. Viola!
You have no idea how much stress this has caused me the last 48 hours.
THANK YOU SO MUCH!