You would like to upload a photo to a user object in gwadmin console. Using Chrome browser you browse and select a photo but the photo is not uploaded into the dialog window, therefore if you click on OK, it complaint that this could not be finished. There are no errors or activity logged in a gwadmin-console.log.
Using Firefox browser from the same workstation and using the same photo image, it gets uploaded to a dialog window where you can resize the photo and conform changes.
A reason behind is some Chrome settings which you could have set in a recent past.
If you go into Options -> Advanced -> scroll down to a bottom where is the "Reset settings to their original defaults".
Ruining this reset option and restarting the Chrome browser fixed the photo upload issue