I have a client with Colorwave theme by Nitrografix and am experiencing the same issue.
The workaround for me was to upload via the standard media manager and paste in URLs to the media in the theme-specific interfaces – awkward, but workable for the short term.
While there could be some oversight by the WordPress team in this release, the odds are more likely that developers took shortcuts or made an oversight during theme development that led to this.
