Profile pic updates everywhere except Teams Meetings

Helloalexbarham 

welcome to the Microsoft community, my name is Recep I'll be happy to help you today.

I understand that profile picture updates everywhere except teams meeting.

Please note that Teams users with mailboxes hosted on premises must be synchronized to Azure Active Directory. They can change the user profile picture providing Exchange Server 2016 (Cumulative Update 3), or above, is running on-premises."

Change your picture in Teams'

https://support.microsoft.com/en-us/office/change-your-picture-in-teams-7a711943-9248-420e-b814-c071aa8d9b9c

See the table with "User's mailbox is hosted in" and the "Modify user profile picture" to see if you should be able to do it.

'How Exchange and Microsoft Teams interact'

https://docs.microsoft.com/en-us/microsoftteams/exchange-teams-interact 

Note the 7 disclaimer as well.

"Teams honors the https://docs.microsoft.com/en-us/powershell/module/exchange/client-access/set-owamailboxpolicy setting that's configured by tenant admins to control whether users can change their profile picture. If the -SetPhotoEnabled setting is turned off in the policy, users cannot add, change, or remove their profile picture."

Also try clearing the teams cache using the steps below and revert with the behaviour.

1. If Teams is still running, right-click the Teams icon in the taskbar, and then select Quit.
2. Open the Run dialog box by pressing the Windows logo key 
    

    

    +R.
3. In the Run dialog box, enter %appdata%\Microsoft\Teams, and then select OK.
4. Delete all files and folders in the %appdata%\Microsoft\Teams directory.
5. Restart Teams.