I had to go in and physically remove every last bit of code of every image since the update, which was/is around 150 images.
There were some that were fine, but some were not.
I found the best and easiest way was to simply go into the html tab in the editor, and remove the offending code off the end of every image url there . . . there are 2 urls for every image if you have a link to show the image . .so each open will have the ?w300 - (or whatever image size you set when uploading) . that is what has to be removed.
You can do it from the image editing box, which removes it from one of the urls which is all that is really needed, but I like clean code in my backend - just in case, so I've removed it all.
When you upload your next image, and prior to inserting it, make sure you click the Link Image button.
When you've done this a few times, your system should remember that you want the url in there by default, and enable the Link image url when you upload the images. (which it used to do by default before - now it's an option).
If you have images that do not open in a page like they used to, such as the thumbnails you mentioned.
1) go to editor . . find the image
2) click on image and the two icons will appear, landscape pic and delete pic, click the landscape pic, this will open up the image editor
3) look for the Link image button in the lower section of that image editor box, click it and the image's url will appear
4) But u=you will notice a set of code figures immediately after the .jpg which will look something like "ht tp://......blahblah.jpg?w125" (or whatever width you selected originally).
5) select the ?w125 etc and remove, click "update" and then that should be it. To double check prior to doing more images.
6) Click update post, then check the post in preview post so you see the post directly as published
7) click on image and the image should appear in afresh page at the full size you uploaded it.
I hope that sortof explains it a little better, albeit some what detailed.
Once you know the procedure and that it has solved your issue, simply go through the images that it has affected, and remove the offending code. Yes, time consuming and a pain, but necessary if you want the images to open properly.
Once you have the default set in the image upload editor to include the 'link image', it will happen automatically, and you will not have to remove the code. Just make sure that it IS selected for though for the first several image uploads, then you will notice that it starts doing it automatically - ideally.
Hope that helps a little ?