Unable to change background b/c of error

So, when I try to change my desktop wallpaper or theme through the Windows Personalization screen, it looks like its in progress but at the end no changes are made.

If I right click a picture to set as a desktop background, whether it's a stock wallpaper, my own photo, and even those I download from the internet I get an error saying 'this image can't be set as a wallpaper. an internal error occurred'

Not sure what happened, any help is much appreciated as I have a creepy zoomed in photo of my dog's face as my background now.

It may be a registry hiccup going on here. Have you tried to change the Theme to a different version, sometimes that will help get it straightened out.