I can replicate it here to a certain degree. I created an album with one image on its side, the thumbnail showed accordingly. I went in and edited the image so it was correctly oriented, saved it. Then went back to album and it still showed image sideways. I went and added another image (have since deleted it) and it forced the thumbnail on the album cover to correct.
I will have to try the other issue at home, and that is an image that was edited prior to uploading, and it uploaded to what it was prior to editing.
Weird.