Apple knows about this issue and is working on a fix. In the meantime there is a work around. PITA but a work around..........from your camera roll drag the pic to the desktop. next click on the "choose file" icon then click on "Desktop" and select the pic.
My work around is to open camera. Open DCIM, click on file and open. Pictures are there. Click on them and move to downloads. Your ready to work from there.
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