As for plugins, I have quite a few installed. If I disable all of them other than woocommerce and buddypress, the avatars have the same issue. The issue is solved by removing buddypress.
The avatars are broken everywhere (blog posts, woocommerce product reviews, admin panel) but on the buddypress profile page.
Edit:
I should mention, the theme developer has mentioned they did not do any work with making the theme compatible with buddypress. If there is something that needs to be done, please let me know. This is my first time using buddypress on a theme that wasn’t made to support it.