An upgrade is not going to cause that issue that would have had to have been an issue all along that means your permissions are not set correctly on the data and uploads folders I would assume or your actual image process on the server is broken.
I can set permissions but an upgrade service is not used to fix a broken site. I can not fix issues with your servers image processors that is your hosts job.
Ask your host what the path to mogrify is if its available just incase your GD is broken. Those are the thinks that need to be looked into.