Thank you so much for the reply! I do have the Photos library set as the default System Photo Library - which was one of the things that was confusing me. I actually figured out what was wrong with this particular issue, but I do still have an issue - it is with Microsoft Word for Mac 2011 and Photos.
The issue I thought I had with Photos uploading to Facebook, etc was because I had put most of my photos into albums and then set those photos to "hidden" so that I wouldn't have to scroll through them all the time and I could just go to the album to see them. When I would try to upload to Facebook, Mail, etc I could only see the ones that were not in the albums - all the albums appeared empty. Once I unhid all the photos the problems was resolved - I tell you this in case someone else runs into this issue. Although these photos were hidden I didn't have that problem in Yosemite (or I never tried to upload to any of these apps after I hid the photos, but I believe I did).
However, there is definitely a problem with Microsoft Word and the Photos app since I upgraded to El Capitan. When I try to add a photo to a document, the photos media only opens a handful of photos - and only I-Photo. I do not use I-Photo anymore. There is no option to use the Photos app ---- so I tried another route - I opened my Photos and tried to drag and drop into the document - it will not allow me to do that either. I have searched the community for others with this issue but have not found a solution. Is there a way to add "Photos" to the Word media? Any ideas on this would be greatly appreciated!!
Thank you!!!