The 4.0.3 release won't affect this at all.
Can you try turning off the avatar import functionality in the Profile plugin area and see if that fixes the issue (at least temporarily)? We're trying to look into the issue to see if there's a difference with how Facebook provides avatars, or something else that's changed.
We just heard another report of this same issue in the thread below. Please feel free to post any updates there:
www.sourcecoast.com/forums/jfbconnect/jf...istered-users#p14219
Thanks,
Alex