Image failed to process. Invalid image ID

I downloaded the Fixer/Upfront theme to start playing with it today, considering this for a quick company website overhaul. I had no problem updating the background image of the first section (woohoo) then I tried swapping out the logo and then just adding an image using the drag and drop tool... no luck. The image is being loaded into the WP media library but won't save using the upfront tool. (see screenshot)