We have seen a number of SharePoint issues caused by a recent Security Update KB 3013126 (MS14-085), including the following:
1. Unable to create Sites (Even with OOB templates except “Blank Site” template).
2. Image File Upload to picture libraries fails.
3. Content deployment hangs.
4. AspMenu does not function correctly (menu drop down does not work).
5. W3WP crashes with a stack overflow (it can hang too).
The issue appears to have been caused by an update to windowscodecs.dll (By Security Update KB 3013126).
The current workaround is to either uninstall this KB 3013126 or update IE on the server to IE9 or IE10 (happens only if the server has IE8) or install KB971512.
It seems that there are some more prerequisites that are missing from the security patch reference which gets covered by installing IE9\IE10 or installing KB971512.
This Update applies to Windows Codec, which is part of Windows OS, SharePoint is one of the affected applications.
Update: 16 Aug 2016
We have Similar issues with KB 3156019 as well & solution remains the same to uninstall the patch or update IE on the server to IE9 or IE10 (happens only if the server has IE8) or install KB971512