Thats a server error your host has locked exif so you must clear the paths in global options for jpegtran and jhead and switch your image processor to gd2. You can no longer use imagemagick.
Right and they locked down exif on your server so you need to remove jpegtran and jhead as noted. You switch from Imagemagick if your using it otherwise GD2 is fine.
i got this error when upload pictures after upgrade to the newest version. 
Linear Mode
