I never noticed this with 1.3.x, so I think its a new problem. At least one of my albums is not an option during file upload. Interestingly the other album in the category is available and the names of the two albums are almost identical. The album which is not available is 3 characters longer at 38 characters. It is definitely available otherwise - ie when browsing categories and albums normally.
Adrian
link, test user account, screenshot, whatever - we need more details to be able to track this.
no reply means PEBCAK, marking this thread as "Invalid" then.