Thanks Carolyn for your suggestion. I tried it but it didn't help.
This time instead of Image Capture just disconnecting the phone, it actually crashed.
Process: Image Capture [459]
Path: /Applications/Image Capture.app/Contents/MacOS/Image Capture
Identifier: com.apple.Image_Capture
Version: 6.6 (525)
Build Info: ImageCapture-525000000000000~16
Code Type: X86-64 (Native)
Parent Process: ??? [1]
Responsible: Image Capture [459]
User ID: 501
Date/Time: 2015-11-16 17:27:21.089 +1030
OS Version: Mac OS X 10.10.5 (14F27)
Report Version: 11
Crashed Thread: 0 Dispatch queue: com.apple.main-thread
Exception Type: EXC_CRASH (SIGABRT)
Exception Codes: 0x0000000000000000, 0x0000000000000000
Application Specific Information:
*** Terminating app due to uncaught exception 'NSRangeException', reason: 'Cannot remove an observer <IKICScrollView 0x6000001d5270> for the key path "contentLayoutRect" from <NSWindow 0x6100001fd800> because it is not registered as an observer.'
terminating with uncaught exception of type NSException
abort() called