When adding a new image to the Media Library, the editing option isn't working properly

Steps to reproduce

Create an image object

1. Log in as admin on plain admin
2. Click on “Media” tab
2. Click on “Image folder in the sub-items list
3. Click on “Create new”
4. Select “Image” in the content class dropdown list
5. Fill in the following details:

Name: Some Image
Caption: Image
Image: browse for a file.

7. Click on “Store draft”

Launch the image editor

1. Click on the “Edit” button below the image
2. Click on “Vertical Flip”

Error message:

The image is not loaded because of a server error.