Product featured image do not work

When I create new Product, and want to upload and set featured product image.
On upload I get: An error occurred in the upload. Please try again later. it is small picture 200kb.

But when I go to Media library, there I see that picture.

http://failiem.lv/u/xedyobx here is link to images what I see.

I was reading online, and find one solution but it did not work for me.

function ms_image_editor_default_to_gd( $editors ) {
	$gd_editor = 'WP_Image_Editor_GD';

	$editors = array_diff( $editors, array( $gd_editor ) );
	array_unshift( $editors, $gd_editor );

	return $editors;
}
add_filter( 'wp_image_editors', 'ms_image_editor_default_to_gd' );

I added this to function.php

But still no luck.

Can you guide me in right direction?

https://wordpress.org/plugins/wp-e-commerce/