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It looks like a software problem. I'd suggest that you do a PC Companion phone repair, this will do a clean installation of the latest firmware and will also wipe your internal memory. Don't forget to back up your data before you proceed.
Open PC companion -> Support zone -> Phone/tablet software update -> Repair my phone/tablet (blue link style). Follow the steps given, do not connect your phone until prompted to press volume down while plugging USB cable.
http://www.sonymobile.com/gb/tools/pc-companion/
Bridge for mac doesn't seem to have a "repair" option, but I backed up my data and reset to factory settings. Let's hope this works. Thanks!
I ended up using Bridge for Mac which doesn't appear to have this support menu, but reset to factory settings after backing up. I really hope this works. Thanks!