Lync 2013 Display photos do no display correctly internally

Question

Hey guys, really need some help with this one so I will provide as much detail as possible (sorry for the lengthy post):
We have Lync 2013, Exchange 2010 and AD is at a 2003 functional level.
We are experiencing issues where Lync photos are not updating correctly in the internal clients. I have checked the pre-reqs; Replicate this attribute to the Global Catalog
is set for the ThumbnailPhoto attribute. We are also forcing photos from AD only (or no photo) by setting the following:
"Set-CsClientPolicy -Identity PhotosControl -DisplayPhoto PhotosFromADOnly"  
and finally we are setting the photo in ad using this PS command:
"Import-RecipientDataProperty -Identity "Test User" -Picture -FileData ([Byte[]]$(Get-Content -Path "C:\pictures\testuser.jpg" -Encoding Byte -ReadCount 0))"
The pictures being uploaded are under 10KB in size. The initial upload of a photo for a user (IE: a new user that doesn't already have a photo) will generally be displayed in both Outlook and Lync within 24 hours. When we try to update a photo for a user who
already has a photo it updates within Outlook but never updates on Lync clients. I have also manually tried running the "Update-CsAddressBook" command from Lync and waiting 24hours + but the photo will not update in Lync client. Another interesting
thing I've found, anyone who set up their Lync in last month or two do not see their OWN photo within Lync (it just shows the default gray/white man) both in the main window and the chat although others can see it.
I was able to find that on our Lync file store, the cached contacts/photos are being updated daily (as expected) and actually contain the correct photos. I confirmed this be using abserver.exe on the .lsabs file and then locating the contactID for a few users
I know are not updating properly. Once I have their contact ID I simply look for their .photo file in the cached files, copy it out to a different location and change it to a .jpeg. To my surprise the photos are actually the correctly updated ones, so why
are these no getting to the users/clients? I have gone through and deleted my local cache folder as well as the registry key HKEY_CURRENT_USER\Software\Microsoft\Office\15.0\Lync but unfortunately no change on my Client.
Another piece of the puzzle; We just implemented a Reverse Proxy to handle mobility with Lync. During my testing I did get Lync client for android running and low and behold the pictures are actually correct on my mobile device!! 
We are planning to upgrade Exchange from 2010 to 2013 and I hoping that leveraging the Hi-Def photo capabilities for Lync 2013 with Exchange 2013 may fix this issue but I would rather try to get it resolved then hope for the best.
More info on the environment:
4 main sites + remote users
~7DC's - 2003 DFL (1 at each site + a few at HQ)
3 Lync Front end servers (2013) (All located at central HQ)
2 Lync edge server (2013) (All located at central HQ)
1 - 2010 Exchange server (Located at central HQ)
2013 Lync Client version 15.0.4675.1000 MSO 15.0.4675.1002 64bit
About 100 HP 4110 Lync Edition Desk phones
Users's workstations are either Windows 7 Enterprise or Windows 8.1
Enterprise

Answer 1

Can you see the pictures being cached in \users\username\AppData\Local\Microsoft\Office\15.0\Lync\[email protected]\Photo ?  You can see me poking around in a pic here for reference:
http://www.skypeadmin.com/2014/12/23/missing-pictures-lync-skype/
If you rename to jpg you should see if they're new or old. 
I'd like to see if you switch a few users to websearchonly for ABS info, if it would make a difference:
http://blog.schertz.name/2010/11/forcing-lync-address-book-web-query/
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SWC Unified Communications
This forum post is based upon my personal experience and does not necessarily reflect the opinion or view of Microsoft, its employees, or other MVPs.