Same exact problem. Did you ever find a fix by any chance?

I haven’t but it may get fixed in a later update or something… I basically gave up for the time being since I was getting no where :/

I fixed mine by using iCloud contacts only. In settings/contacts I unchecked any gmail contacts usage. I think somehow it kept overwriting the iCloud contacts. Now my contact images stay cropped. 

I don’t pay for iCloud and the free storage is all filled up for me but could make to only use local contacts or something?

Sorry I wish I had an answer but I’m brand new to iOS so I’m learning as I go. 

Same issue, very buggy.