Drupal 7.34: Jquery_update module is prevents image upload and remote url file transfers

Enabling Jquery_update module is causing image upload and remote url transfer to suspend.

Disabling it enables expected image file manipulation again.

This looks like an issue between jqu and drupal core. Issue was raised early as 2011 but not been solved.

https://www.drupal.org/node/1063818

Ive marked as major because i need both jqu and image upload.

thanks

laurence