Edit: After further investigation, it seems that the issue was in specific exported images from Photoshop.. I opened them in Photoshop, unlocked layer just in case, re-saved these images “save for web” and made sure the metadata -field is set to “none”.
Now I was able to upload these specific images. I’m no expert, but it seemed to work.
I hope it helps. “WordPress Media Library Folders” in my case..
I found an easier solution. I removed a plugin that was used to organize media into folders. The problem still existed. Then I went to Settings -> Media, and saved once, and then i go (just in case) to Permalinks and also save. After that I upload an image… it works again!
Only weird thing is that when I upload an image, image doesnt appear in the media right away, when i refresh, it pops up.
I hope someone finds this useful.