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Try this: Uncheck all the checkboxes in Preferences/Hardware acceleration. Preview to make sure that they are oriented the way you want. Produce with no hardware encoding.
Thank you SO MUCH for this information! I just had the same problem with a project in PD16. In my case, I had two iPhone clips and one JPG image, so similar to OP. Some clips turned upside down right in the middle of the clip and the JPG image was upside down. Anyway, after reading your response I turned off hardware acceleration (it's on the "Produce" screen in PD16, not in Preferences) and it fixed it. Also, it didn't seem to be any slower without hardware acceleration.
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