Image styles are not being applied. I have the /files/ directory set to CHMOD 777, GD Library is installed. When you upload an image, it just goes to the /files/ directory, none of the styles are generated into their styles folder. Reports -> status report is clean. Image uploads, but it stays in files directory, no thumbnails are generated, all paths are broken to the image even to the thumbnail in the Media page.
Hosted on AWS EC2 Linux/Apache
.htaccess in /files dir:
# Turn off all options we don't need.
Options None
Options +FollowSymLinks
# Set the catch-all handler to prevent scripts from being executed.
SetHandler Drupal_Security_Do_Not_Remove_See_SA_2006_006
<Files *>
# Override the handler again if we're run later in the evaluation list.
SetHandler Drupal_Security_Do_Not_Remove_See_SA_2013_003
</Files>
# If we know how to do it safely, disable the PHP engine entirely.
<IfModule mod_php5.c>
php_flag engine off
</IfModule>
'sites/default/files'
are recursive and cross verify permissions of'sites/default/files/styles'
directory, because image styles are stored inside this directory. Also check Drupal Logs to check failure of image style generation. Also please provide Drupal version you're using.