I have the same problem with my passport. Works everywhere except UK e-gates. Border agent checked it and said something about retrieving the image or something and told me what to tell UKPO to get a replacement but since I now travel everywhere with assistance and bypass the e-gates I've not bothered. Issued in Nov 2016 using the 4-hour service so maybe they messed some of them up.
If I had to go back to not using assistance I would definitely get it replaced as I've experienced the e-gate queue followed by inevitable 2nd wait for an agent.