Tried updating picture different ways but it fails every time to update the picture.
To resolve this issue follow the below steps.
Please delete following cached files on affected machine and let me know if this helps:
1. Open Windows Explorer and locate the folder (C:\Users\<User profile>\AppData\Roaming\Microsoft\Crypto\RSA)
2. Delete the RSA key subfolder. The name of the RSA key subfolder consists of a long string of numbers and characters. For example:S-1-5-21-433994307-1646369186-2100375486-500
3. Go to C:\Users\UserName\AppData\Roaming\Microsoft\ Office\15.0\Lync and delete the Account.dat file of the affected user.
4. Go to C:\Users\Administrator\AppData\Local\Microsoft\Office\15.0\Lync and delete the specific SIP profile of the affected user.
Now update the Lync picture and you should see the picture on Lync client in couple of min.