Just tried to change my avatar on here but it wont save it...
Pretty sure I know what I'm doing and doing it right but to cover all bases this is how I've tried.
Image is JPEG format
Image is 120x120px
Selected the file and clicked upload
Old avatar remains
Tried it quite a few times too.
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Hope you get it worked out.
One other thing I guess I should have mentioned, I'm using Chrome if that makes a difference.
It took a few ctrl+f5s to refresh it, and last I checked my settings page still showed the old image but it was a cache issue.