It sounds like the camera app itself is the problem. If you factory reset the phone and it's still a problem, it may be the "default" camera app download is corrupted somehow. If your camera app is fully updated, you could try to repair the install. If that doesn't work, you could also make a different camera app the 'default' to take pictures with. If the gallery shows photos taken with other apps, and image downloads display correctly, then it's not a problem with the gallery or the physical camera.