I have an issue in my live Magento 126.96.36.199 environment. When I upload the watermark image, which works in my dev, the image is created in my cache, but Magento is choosing it's basic placeholder image. So no image with the watermark, and I set up an custom placeholder.
What can be the problem? GD lib is installed, the vhost is the same as my dev env.
Did you deleted the Cached Images? (There is a specific action for that)
Yes, I cleaned the cache. The moment I activate the watermark, the image get recreated in the cache folder, but with the default placeholder image.
It looks like the creation fails because the code can't find the watermark, or create a temporary file, and just shows a placeholder instead.
What about the Magento's logs? Did you saw some message related? (also take a look to the webserver error log)
I checked all the error and acces logs, but I can't find anything related. I also rechecked my privileges, and resetted them with the setting advised in this post: https://magento.stackexchange.com/questions/151375/recommended-file-system-ownership-and-privileges/...
Still nothing, only the basic placeholder.
And what is happening if you don't use the watermark feature?
The image is showing as expected, the path is in the cache folder. And if the product doesn't have an image, my custom placeholder is showing.
So Magento can write to the cache folder, but fails in the watermark process.