If you do not enter a contacts first name or company name but instead add contact details such as an email address of telephone numbers etc to the contact record when you click on Create you will see an error message as shown below:

To resolve this you must enter at least the contacts first name and/or company name for this contact to be created and added to your contacts database. 

Please be sure to add the data fields for the contact such as their name and company name (if applicable) before adding an image against their contact record.  

When you have completed the contacts data fields information click on Create before opening up the contact record to edit further details such as adding a photo against their record.