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well if GD works then your paths and permissions seem fine so yes your imagemagick is broke.
Your host most likely updated your server and broke the mogrify install. GD2 is pretty much quality wise the same as imagemagick but its prone to issues uploading larger files as in shutting down php since its part of PHP.
Your only recourse if you want Imagemagick would be to recompile that and without ssh access thats impossible.
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