It's more likely a settings issue and not a computer problem.
I played around in settings and there appears to be an interface glitch when you switch from mobile skin to the desktop view. If you select 'mobile' as the default then pictures disappear and various other problems pop up; most of these problems disappear if you select auto, but this does result (at least on my iPhone) in reduced capabilities from your mobile device.
And Phil, it's not just you - on May 8 (day of the upgrade) I also had a horrible time trying to upload pics directly from my iPhone - it didn't recognize the format and eventually I gave up trying to use my phone. I Airdropped them onto my Macbook and went that route - but the new system of adding pics from the computer is very nice (it's almost exactly like using Google Drive or SharePoint, I very likey very much).
I'm hoping the mobile bug for iPhones has been fixed.