that's a huge difference. Though it might no be because of the update, but rather damaged hardware. After my C7 got run over by a car, the camera give a really noisy image unless I whack it on a table top or something.
Also have you tried reinstalling the firmware on a clean phone? I'm pretty sure the update hasn't affected other 701s like this so there might be some sort of software clash with image processing.
Another problem could be with the camera application itself. test the camera with a another camera application, if you have one.
edit: there is a huge white flash on the tree in the middle which makes it look like a photo of a wallpaper and the photo looks underexposed like it had been taken indoors...