That was a good suggestion, i switched inside the camera settings “Formats” now from High Efficiency to Maximum Compatibility and when i do a photo now and upload it via pydio app, or just create a photo inside the pydio app it uploads it and sets the thumbnail correctly.
So even when set to High Efficiency and it should create a HEIC and i want to upload it, in pydio its converting it to JPG and errors out on the Thumbnail, but when set to Most Compatible and i do it again it does not need to convert it from HEIC to JPG and it gets done correctly.
So pydio needs a HEIC/HEVC filter? 