Override the users profile photo or WordPress avatar photo that is link to your Gravatar WordPress account.
Select the media upload field on the standard fields.
In form settings, make sure to check the User Avatar Photo in the field settings.
After this, view the form on the front-end and you can start uploading the image for the User Avatar Photo. Please the images below.

Gravity Forms Media Upload Field – User Avatar Photo Front-end 1

Gravity Forms Media Upload Field – User Avatar Photo Front-end 2
All images is being stored or uploaded in /wp-admin/upload.php you can view it here.
Also check your profile image if updated in here /wp-admin/profile.php you can view it here.