Was the image taken with a mobile device? Sounds like it could indeed be a bug - or at least an oversight. You should probably report it.
FWIW, my Upload Buddy plugin is “orientation aware” and allows you to automatically scale the image before it’s uploaded so that the user really doesn’t have to do anything. They could select a 30 MB image, and you could resize it to whatever you want before it’s sent “across the wire”. That results in a better user experience, less bandwidth, and less Bubble storage utilized.