The saving of a photo whether new or edited is the exact same function. The only difference between the two is $row->id exists for photos being edited, but that doesn't have anything to do with the upload process. The folder/file permissions can be changed from within GJ > Config > General if you want.
Please PM backend login credentials and will take a look.
I can see a possible cause for this if Captcha is used, but I don't see captcha in your screenshots. At any rate would be happy to take a look as appears there will be a 2.5.1 to fix some minor issues. The below bug ticket highlights this. A workaround is to disable Captcha for photo/file uploads from GJ > Config.
forge.joomlapolis.com/issues/3326