Currently Being ModeratedFeb 8, 2013 1:06 PM (in response to squishyvic)
I ran into the same problem on iOS 6.1 on an iPhone 4S. Same repro steps except that I copied my image from within Safari. I agree that this method of adding images is best as it avoids having to safe the image you want to use to the photos app.
Currently Being ModeratedFeb 17, 2013 8:37 AM (in response to squishyvic)
I'm having the same issue, and honesty I prefer to edit my contacts photo through the copy and paste method so I'll have the thumbnail instead of the huge photo. I really hope they fix that issue sooner than later.