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As already stated if it is a private photo it is not going to show as there last thumbnail. This has been the case for some time now.
As pointed out though your giving me two separate links and trying to make a comparison of features. As a user who does not have permission to see private albums I do not see private albums on any of your installs so I really can't say anything here cause both installs look to be performing correctly.
In relation to what I am saying about. Your 5.62 site is has no thumbnail for your gallery cause the last uploaded photo is a private album and since no one has permission to see it there is no thumbnail there. In your 5.5 install your last photo is a publically displayed photo from the members gallery. There fore in both instances they perform fine. If you do not want to have the members gallery show a blank thumbnail then you can elect in admin to set the option to not show the last photo uploaded in the members gallery which will give you a little different layout without thumbnails. This is what you select for when you have tons of members in your situation with private albums no one has permission to see.
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