WordPress Image Resizing Breaking JPGs

I’m having a strange issue and I was hoping to get some advice from someone who might have gone through the same thing.

When ever I upload a JPG to my media library, it looks fine, but as soon as I insert it into a post, the image breaks.

The original remains fine though, it’s just always the resized image that breaks showing me the usual icon. I’ve looked at the permissions of my uploads folder and the wp-content and they are both set to 755. Deactivating and activating plugins doesn’t seem to help either.

One strange thing I noticed is that when the file is altered by WordPress, it becomes about 1KB in size and I am not able to open it in Photoshop.