Share your experience!
Try to clear data for contacts app under settings-apps-all and restart.Try again.
See if the same occurs in safe mode:
http://talk.sonymobile.com/t5/FAQ/How-to-boot-your-phone-into-safe-mode/m-p/348008
I have the same problem. The only way I can add a contact picture without it autorotating is if I take a picture directly in the contactsetup. This is a really annoying bug.