Images: Not showing as featured or in post

Strange thing happened and am out of ideas on how to fix.

I just built the site 2 days ago so it wasn’t a changeover. All was working fine. Yesterday, I added a post and had issues with two things:

1. Set Featured Image.
I can upload an image but when I go to set it it doesn’t show up. When I go to the media library it is showing as an item but no thumbnail. I can set a feature image if I select an image that was already uploaded but nothing new.

2. Add media into a post.
When I add media to a post, I again can upload or take from the library but it doesn’t show up. When I look at the code it changes the size to 1 and 1.

If I look at my media library all the images that were there on 18th are okay. Anything added since has no thumbnail showing and the issues as noted above.

1. I deactivated all plugins to see if there was something with any but problem was still there.
2. I downloaded the regenerate thumbnail plugin but when I tried to use it all images failed to regenerate. This shouldn’t be an issue since none were uploaded before using this theme.

There are two posts showing on my site one showing it working fine and the other (latest) showing an image where I had to manually change the size of the image. http://www.mylesaheadstudio.com/

I am at a loss for what to try and really don’t want to have to start over again. Any ideas would be appreciated!