Hi Dasanism. Your picture is hard to see. Here's a cool tip for you. Holding the Home and Power buttons together will take a screen shot of your phone's display. I took one of mine in reference to your concern.
Now, on to your question. The one major question I have is what version of Android are you currently running - Jelly Bean (4.3) or KitKat (4.4)? I am currently running a rooted Jelly Bean OS. Even though I do not believe rooting has anything bearing on this issue, I figured I would let you know. As you can see by my screen shot, the settings option under the camera shows any pictures I take will be placed on my device. I have a SD card but I literally have no space available on it.
Although I have not tested it, there is a reset option available at the bottom of the Settings window. If you see that, tap on it and see if that resolves your issue.