Which version of BuddyBlog Pro are you using? In case you are not using 1.1.8(latest version), you will need to enable the Editing permissions for the post to have the upload feature. If you are using the latest version, This is not required.
Please visit Dashboard->BuddyBlog->Settings and then the Post Type tab. Please enable “Editing” for all members and let me know if that resolves it or not?
your settings are correct. Do you have a staging site? If yes, Please temporarily disable all plugins except BuddyPress, BuddyBlog pro and try the same.
One of the plugins is modifying the upload_files or edit_post permission.
Please let me know your findings.
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