There is a conflict between the BP image upload feature and the “lazy images” feature of Jetpack plugin. The “Lazy Images” feature is preventing the image to be displayed after importing it to the website and prevent you to crop it.
This option is enabled by default when Jetpack is installed. To check all the activated Jetpack features on your website, go to Dashboard > Jetpack > Modules (at the bottom of the page).
Once there, you just have to unchecked the “Lazy Images” feature to allow the upload feature works again. Jetpack tends to activate a lot of (unnecessary) features by default. On this page, you’ll be able to deactivate all the features you do not need.