Hi, I’m making this post for anyone who might have the same problems as me in the future. I compile most of my web server from source. When i encountered the error I recompiled my php (7) with --with-gd. However, when inspecting phptest page i noticed that jpeg support was missing, only png was supported. Next I recompiled php with --with-jpeg-dir=/usr/lib64 --with-gd options hoping for the problem to be gone but to my surprise it was still there. After couple of days trial and error I did make clean and the problem was finally sorted!
TL;DR
If compiling php from source try make clean beforehand.
