The memory size fixed my issue!
If anyone has this same problem, please try verifying that you have enough (64MB+) server memory allocated to Apache/PHP in your server configuration settings.
You can also add this to your wp-config.php file:
define('WP_MEMORY_LIMIT', '64MB');
Now i’m able to upload images, see the correct size, and add them to my articles with their proper size.
I’m also having the same issue on a brand new WordPress site and I haven’t installed a single plugin yet. I tried it on 4.5.1 and it became such an issue that i reverted to 4.4.x and I’m still getting the 1 pixel issue, but I’m able to upload images finally.
Please let me know if more info is needed.